Steel closures 'far from done deal', minister says

No options are off the table to secure the future of steelmaking in Scunthorpe, the government has said, in response to calls to nationalise the plant.

British Steel has launched a consultation on the proposed closure of two blast furnaces, raising fears of thousands of job losses.

Business minister Sarah Jones said the early closure of the furnaces was "far from a done deal" and talks were planned this week with the firm's Chinese owner, Jingye.

She was responding to an urgent question in the House of Commons from the Conservative MP Martin Vickers, who raised concerns that orders were not being made to secure the raw materials needed to keep the furnaces going.

Closure would mean the end of steel-making in the town after 160 years.

The BBC understands Jingye was expecting a £1bn injection of government money but was offered £500m to help its transition to a greener form of steel production with a new electric arc furnace.

Vickers, whose constituency of Brigg and Immingham borders Scunthorpe, said Jingye was "not involved in meaningful negotiations" and it was "very obvious" that the company had cancelled orders for raw materials.

"When I was at the steelworks on Friday, I was told that unless they could place another order for iron ore pellets this week then it'll be too late," he said.

"Nationalisation on a temporary basis is the only solution to keep the furnaces burning come the middle of next month."

Jones said Jingye were "very much talking to us".

She told Vickers: "We have been clear in our belief that the best way forward is for Scunthorpe and British Steel to continue as a commercially run business... with private investment and government acting in support.

"But I can tell him that no options are off the table."

Richard Tice, the Reform UK MP for Boston and Skegness, warned the blast furnaces could go "cold" within a fortnight if raw materials were not ordered.

He told Jones there as a "very short time frame" to ensure the blast furnaces stayed open.

"The long-term solution is to take British Steel into public ownership, invest in it for British industry, and for British Steel and for the workers in Lincolnshire," he added.

Jones said decisions would be driven by economics and jobs, "not ideology".

"It is our preference that there is a commercial solution with the Government providing support.

"I can assure him we are working at pace."

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