Ministers in talks over British Steel nationalisation – Daily Business

UK ministers are locked in talks over the possible nationalisation of British Steel whose main plant is in danger of imminent closure.

The company’s blast furnaces in Scunthorpe could run out of raw materials within days and Chancellor Rachel Reeves has said the government would consider nationalisation as a last resort.

It has been owned since 2020 by the Chinese company Jingye which has invested more than £1.2bn into the business. However, it says its losses are running at around £700,000 a day.

US President Donald Trump has levied a 25% tariff on American imports of steel, putting a further question mark over the future of the plant which employs about 3,000 people.

Ministers say steel is a strategic industry and a key supplier to the British rail industry.

Reform UK leader Nigel Farage and his deputy Richard Tice – himself a Lincolnshire MP – visited the works on Tuesday, with Mr Farage claiming there were “three days to save British Steel” and the way to do that was to take it “into public ownership.”

Business 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.

In a written statement yesterday, she said: “Our priority is respecting workers, safeguarding jobs, and retaining steelmaking.

“We have been clear that the best way forward is for British Steel to continue as a commercially-run business with private investment and government acting in support.

“We call upon British Steel to accept our generous offer of financial support, and the associated conditions.

“However, no options are off the table. The government remains resolute in our desire to secure a long-term future for the Scunthorpe steelworks, retaining steel production and putting an end to the years of uncertainty.”