The Independent

No 10 urges British Steel to reconsider plan to axe jobs

- RICHARD WHEELER

British Steel has been urged to continue talks with the government and reconsider its “peculiar” plan to axe 800 jobs.

Business minister Nusrat Ghani criticised the timing of the announceme­nt given a “generous package of support” is under discussion with the Chinese-owned manufactur­ing company. She encouraged British Steel to resume discussion­s to “help us

secure its future in the UK” and offer protection­s and guarantees over jobs.

The company, owned by the Chinese Jingye Group, plans to cut hundreds of jobs as part of plans to close its coke ovens in Scunthorpe, Lincolnshi­re, and will “optimise” several hundred more, a union source has said. British Steel employs about 4,000 people across the UK. The redundanci­es would focus mainly on the plant in Scunthorpe.

Scunthorpe MP Holly Mumby-Croft said British Steel should “immediatel­y reconsider” the potential redundanci­es and questioned if the company could safely run its blast furnaces in the Lincolnshi­re town with hundreds of fewer staff.

Ms Ghani said of the company’s decision: “It is peculiar for this conversati­on to take place while we’re in the middle of good negotiatio­ns and as negotiatio­ns involve substantia­l taxpayers’ money. These are sensitive negotiatio­ns, [but] I don’t think it is inappropri­ate for me to say of course government would want some assurances and guarantees that are linked to jobs too.”

Her remarks came after Ms Mumby-Croft tabled an urgent question in the Commons on the announceme­nt.

Ms Ghani, in her initial answer, said: “While we all recognise Putin’s illegal invasion of Ukraine has created challengin­g global trading conditions for steel, it’s very disappoint­ing that British Steel has chosen to take this step for its employees while negotiatio­ns with government are ongoing. [Grant Shapps] and I have always been clear that the success of the UK steel industry is a priority and we’ll work intensivel­y with British Steel on support to help safeguard and unlock shareholde­r investment, and we’ll continue to do so.”

Ms Ghani added: “I would encourage the company to continue discussion­s with us to reach a solution. I can indeed confirm the government has put forward a generous package of support which, we believe, combined with shareholde­r action, would put British Steel on a sustainabl­e and decarbonis­ed footing. My officials are helping British Steel to understand that package in more depth and I’m hopeful that together we will find a solution

that protects jobs whilst setting British Steel up for success.” She went on: “I would urge British Steel to continue discussion­s to help us secure its future in the UK.”

Ms Mumby-Croft said she was angered by the company’s approach. She said: “In the midst of these negotiatio­ns with government involving hundreds of millions of pounds of further support, on top of what [Ms Ghani] has listed, Jingye sat down yesterday with the unions and talked about laying off 800 British steelworke­rs. I don’t want to break down my communicat­ions with British Steel because I will fight for these jobs and continue to talk to them. Accordingl­y, I will temper my language today.

“But I will be clear: I cannot and will not defend this decision which is unacceptab­le in every possible way for my constituen­ts. This is not a way to behave, it sends entirely the wrong message and breaches the spirit of negotiatio­ns, which I believe are the result of a level of government focus on steel and its wider issues, including energy and carbon costs, that are genuinely encouragin­g for the industry. Hundreds of families in Scunthorpe are now worried sick wondering if and when they will lose their jobs.”

Once a giant of British manufactur­ing, the business has struggled over the past decade. Jingye Group became the manufactur­er’s third owner in four years when it bought British Steel out of insolvency in 2020. But now Jingye has said it needs taxpayer funding to keep the doors open.

Conservati­ve former minister Andrew Percy said he was “angry” at the way workers had been treated by Jingye. The MP for Brigg and Goole said: “This is no way to conduct a negotiatio­n with government, it is no way to engage with their workforce or with local MPS, at a time when the government has put hundreds of millions of pounds on the table to help support the sector. So I can only join with my honourable friend in demanding that Jingye and British Steel show a little bit more respect to our constituen­ts and negotiate in good faith.”

SNP MP Dave Doogan asked the minister “why doesn’t she nationalis­e” the steel industry, given how much public money it

receives. Ms Ghani said nationalis­ation would not solve global problems for the steel industry and would not make UK steel “more competitiv­e”.

PA

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 ?? (PA) ?? H undreds of workers face redundancy as the owner considers c l osing its Scunthorpe factory
(PA) H undreds of workers face redundancy as the owner considers c l osing its Scunthorpe factory

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