“All options” remain on the table over the future of British Steel, the chancellor has said, as fears mount over the company’s plant in Scunthorpe.
The government is actively considering nationalising British Steel after Jingye, its owner in Scunthorpe, cancelled future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.
The decision has led to fears that the Scunthorpe plant, the last blast furnaces left operating in Britain, could be forced to close as early as next month.
Speaking to reporters in Bedfordshire, Rachel Reeves suggested nationalisation could be an option to secure the future of British Steel in Scunthorpe, which was purchased by Jingye out of receivership in 2020.
“All options remain on the table regarding British Steel,” she said.
“This government recognises the importance of those jobs in Scunthorpe and in the local area, and we’re doing everything we can to preserve those jobs and to support those communities.
“We’re in conversation both with the owners and with the trade unions to find a deal.”
On the issue of whether the plant could secure access to the raw materials it needed to run the blast furnaces, the chancellor said the government was in “active discussions now with both the owners and the trade unions”.
Fears over the Scunthorpe plant’s future intensified after talks between the government and Jingye broke down last week after the Chinese company rejected a £500m offer of public money to replace the existing furnaces with electric arc furnaces.
The government offered the same amount to Tata Steel, the owner of the steelworks in Port Talbot, which shut down both of its blast furnaces last year and is replacing them with electric arc furnace as part of its transition to greener production methods.
