Rachel Reeves open to nationalising British Steel

It has rejected a £500m support package from the government, which would protect jobs at the steelworks during the transition to electric arc furnaces.

Jingye said the plant was currently operating with losses of around £700,000 a day, and partly blamed Donald Trump’s 25 per cent tariff on steel for the closure.

If shut, the UK would be the only country in the G7 unable to produce virgin steel.

The government has said it would prefer to reach a commercial deal with Jingye, however the Chancellor reportedly told unions this week that she would consider nationalisation if necessary.

While the Prime Minister told Tuesday’s Liaison Committee that “all options are on the table”.

“I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe,” he said.

“But as to precisely where we’ve got to in those talks, I will very happily provide you with further details as soon as I can.”

Lib Dem leader Sir Ed Davey urged the Prime Minister to use Scunthorpe steel to build the Universal Studios theme park in Bedfordshire.

He told Politico: “As a fellow rollercoaster aficionado, I hope the Prime Minister will use his trip to Universal Studios to encourage the theme park to buy British — boosting our steel industry as it’s pushed to the brink by Trump’s tariff crisis.”

Culture Secretary Lisa Nandy told LBC yesterday that a commercial deal is “in sight”.

She said: “We know that there are serious pressures on British Steel, and the Chancellor and Business Secretary are working at pace to try and resolve them, but we believe that the future of British steel is essential to the UK economy.

“We think a commercial deal is still possible and is in sight, and we're working really hard to secure it.”

She added that “the next few days are absolutely crucial”.

It comes as calls to take British Steel into public ownership have increased in recent days.

Sir Andrew Cook, a former Conservative donor and chairman of steel engineering firm William Cook Holdings, told The Yorkshire Post he backed “temporary nationalisation”.

Sir Andrew said: “Nationalisation is the last resort but it’s the only option left when a core strategic industry like steel is under threat.

“The alternative is to rely on Chinese steel, which fails to support the UK economy and the remaining skilled jobs in our regions.

He described the nationalisation of Sheffield Forgemasters in 2021 as a “useful precedent”.

“If anything, British Steel’s Scunthorpe plant with its two blast furnaces is of at least as great strategic importance to our sovereign capabilities,” he added.

Nigel Farage’s Reform UK has called on the Government to nationalise the plant within three days, and also acquire Liberty Steel Rotherham for its electric arc furnaces.

He said: “Whilst the government dithers and delays, we have produced a plan to ensure the survival of British Steel.

“Without immediate action to nationalise Jingye’s UK business within the next three days the UK’s last blast furnaces risk being shut down permanently.”

It comes as concerns have been raised in the Commons that the Chinese company has cancelled an order of raw materials required to keep the blast furnaces on.

Restarting the furnaces would be very difficult if they cool down.

The Conservative MP for Brigg and Immingham, Martin Vickers, said: “It is very obvious that Jingye has cancelled the raw material orders that are essential to keep the furnaces going; those orders were due in mid-May.

“When I was at the steelworks on Friday, I was told that unless another order for iron ore pellets could be placed this week, it would be too late.”

Earlier this week Industry Minister Sarah Jones hosted a meeting of the Steel Council with the chief executives of Tata, Liberty and British Steel as well as trade union leaders and the trade association UK Steel.

A spokesperson for steelworkers' union Community said: “Discussions between the government, Jingye and the unions are ongoing.

“In those talks we have emphasised that all options must remain on the table, including nationalisation.”