Government must 'fulfil promise' to keep British Steel alive, unions warn

British Steel announced it would close its blast furnaces in Scunthorpe last year, replacing them with a less polluting electric arc furnace if it received “appropriate support” from the Government.

Business Secretary Jonathan Reynolds announced a £500 million package to support the Tata steelworks in Port Talbot to make the transition to low-carbon steel production, but no agreement has been reached with British Steel.

Three steel unions - Community, GMB and Unite - met with Jingye yesterday to present a report from consultants, Syndex, on the decarbonisation strategy for the steelworks.

A combined statement from the unions described the meeting as “constructive” and said they “emphasised our support for the recommendations contained in the report, including the strong recommendation to operate two blast furnaces at Scunthorpe to facilitate a smooth and low-risk transition”.

There have been fears within the industry that if an agreement isn’t reached then the blast furnaces could be switched off and thousands of jobs could be lost next year.

The unions said they look forward to further discussions with Jinye and “stand ready to work with the company to secure jobs and a long-term future for British Steel”.

“If these talks are to lead to a successful outcome, the UK Government must make good on its promises to steelworkers by supporting the huge investments required to successfully transition to greener steelmaking.” they said.

Alasdair McDiarmid, Community's assistant general secretary, added: “Workers at Scunthorpe are counting on the government to work with the company and unions at this critical juncture.

“The UK Government needs to step up and be ready to commit the money they have earmarked to enable British Steel to decarbonise in the right way.”

Mr Reynolds previously blamed the Conservative government for not progressing plans to develop carbon capture and storage at the site in Scunthorpe.

The Department for Business and Trade said it has engaged closely with British Steel and the unions, but would not comment on ongoing negotiations.

A spokesperson said: “This government will simply not allow the end of steel making in the UK.

“That’s why we’ve committed up to £2.5 billion of investment to rebuild the UK steel industry and support communities now and for generations to come.

“We’re working across government in partnership with trade unions and businesses, including British Steel, to secure a green steel transition that’s right for the workforce, represents a good investment for taxpayers and safeguards the future of the steel industry in Britain.”

This comes after reports that the Government is considering nationalising British Steel to save the plant.

A source told The Guardian that renationalisation was “the least attractive option” due to its significant cost, but said it would be “negligent not to look at it”.