The government is considering nationalising British Steel following fears that the firm’s blast furnaces in Scunthorpe could run out of raw materials. Chancellor Rachel Reeves hopes to reassure workers at the plant in Lincolnshire that nationalising is being considered if necessary.
Speaking to trade unions over the weekend, the BBC reports that Reeves told them she was “acutely aware of the steel industry’s strategic importance to the UK,” as she hoped to “explain the government’s outlook on the steelworks’ future.”
American President Donald Trump has imposed a 25% tariff on steel imports to the US. The company has said that it’s two blast furnaces in Scunthorpe are “no longer financially sustainable” and there are concerns that 2,700 jobs could be lost without some support from the government.
British Steel is owned by Chinese firm Jingye which says it has invested over £1.2 billion into the company to maintain its operations. It claims to have lost around £700,000 a day.
The prime minister confirmed that “all options remain on the table” in terms of potential government support. He was answering questions from MPs on the Commons Liaison Committee. “I’m absolutely committed to steel production in this country,” the PM said. “I can reassure the committee that we’re doing everything we can to ensure there is a bright future for Scunthorpe.”
The government has offered £500 million in support, hoping to fund a switch from blast furnaces to electric arc furnaces. This offer, however was rejected by the company.
Stay tuned to EyeOnLondon for the latest news and expert opinions.
Follow us on:
Subscribe to our YouTube channel for the latest videos and updates!
We value your thoughts! Share your feedback and help us make EyeOnLondon even better!
