The future of British Steel remains very uncertain after the Jingye, who owns the Scunthorpe site has cancelled all future orders for raw materials to produce steel.
The Scunthorpe plant could close next month which is the last blast furnaces operating in the UK.
Rachel Reeves said on Wednesday that the government could nationalise British Steel at the Scunthorpe plant.
The Chancellor said, “All options remain on the table regarding British Steel.
“This government recognises the importance of those jobs in Scunthorpe and in the local area, and we’re doing everything we can to preserve those jobs and to support those communities.
“We’re in conversation both with the owners and with the trade unions to find a deal.”
She added that the government is in “active discussion now with both the owners and the trade unions.”
The Chinese owned company rejected an offer from the government for £500 million of public money to replace the last blast furnaces in the UK with electric arc furnaces.
Kemi Badenoch the Tory leader said the government should find a “commercial solution” to save the Scunthorpe plant as this will avoid the “British taxpayer” forking out the money through higher taxes.
Speaking about Port Talbot steel works Badenoch said they saved the plant with a £500 million rescue package by going green by using electric arc furnaces.
Badenoch said, “It was difficult, but we saved that steel plant.
“And it’s going to thrive, and it’s going to regenerate the area. Yes, some jobs were lost, but worked for a commercial decision that did not put too much pain on the British taxpayer.”
The Tory leader said she is “amazed that nine months in, Labour have lost British Steel”.
“And now they’re talking about nationalisation – I want to see what the commercial options are,” she continued.
“They should also be trying to make sure that they reduce tariffs on steel across the board and stop the excessive dumping from China.
“China dumping steel across the world is making steel very cheap from there and more expensive for everyone else. That needs to change. If we’re going to be using steel in our country, we need to be competitive.”
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