BUT STEEL NEEDS £70M LIFELINE

THE future of the British steel industry was in doubt last night as the UK’s second largest producer teetered on the brink of collapse.

More than ,000 jobs at British Steel’s plant in Scunthorpe are at risk as the firm faces administration amid a massive funding crisis.

It is locked in heated talks with the Government but the company’s request for a £70million loan bailout has so far been rejected.

Just two weeks ago, it was granted a £120million loan by Business Secretary Greg Clark to pay a bill for European Union carbon credits.

The firm is suffering from a slump in orders from Europe amid Brexit uncertainty, insiders said. Ministers are preparing secret contingency plans in case it goes under and insolvency firms are said to be on standby.

Nic Dakin, the Labour MP for Scunthorpe, said: ‘I am calling on the Government to take the necessary action to support our steel industry at this critical time. Four thousand high-skilled jobs are at stake here.’

A British Steel spokesman said: ‘Discussions are continuing about additional support.’ The Department for Business, Energy and Industrial Strategy declined to comment.