The government is considering the nationalisation of British Steel amid fears its Scunthorpe blast furnaces could run out of raw materials within days.
The company, owned by China’s Jingye Group since 2020, says the furnaces are no longer financially sustainable, risking 2,700 jobs.
British Steel last operated under public ownership in 1988, before being privatised by Margaret Thatcher.
The last major nationalisation in the UK followed the 2008 banking crisis when the government took control of RBS and Lloyds.
Chancellor Rachel Reeves has told unions nationalisation is an option if needed, stressing the steel industry’s strategic importance.
Ministers are concerned that the company has cancelled essential iron ore orders, threatening a shutdown.
Jingye says it has invested £1.2 billion into British Steel and is losing around £700,000 a day.
The government’s £500 million offer to support a switch to electric arc furnaces has been rejected - the Chinese reportedly wanted double that figure.
Talks continue as political pressure builds ahead of local elections in Lincolnshire.