Union condemns threat of hundreds of job losses at British Steel in Scunthorpe

British Steel is planning to axe hundreds of jobs and impact hundreds more as ministers consider a multimillion-pound rescue package for the struggling business, according to reports.

A union source said the Chinese-owned manufacturing company was said to be cutting 300 jobs from the coke ovens, with another 600 to 900 being "optimised". It is unclear what this optimisation would mean.

The affected jobs would largely be at the Scunthorpe plant in Lincolnshire, which employs approximately 3,500 of the firm's 4,500 staff.

It comes amid negotiations with the government, which is reportedly considering cash injections into both British Steel and Tata Steel UK.

Last month it was reported that Chancellor Jeremy Hunt was close to signing off on the support package, which could funnel around £300 million to British Steel, with a similar sum going to Tata.

The funding is reportedly also set to be linked to decarbonisation efforts from the steel giants. Officials hope it will help to replace British Steel's blast furnaces with electric or hydrogen-based alternatives.

Once a giant of British manufacturing, British Steel has struggled over the past decade.

China's Jingye Group became the manufacturer's third owner in four years when it bought British Steel out of insolvency in 2020. But now Jingye thinks it needs taxpayer funding to keep the doors open.

Alun Davies, national officer at the steelworkers' union Community, said: "We are extremely concerned about the reports that British Steel is looking to cut hundreds of jobs.

"This move would represent a betrayal of their loyal workforce and their commitments to invest in the business. We believe this would put staff at risk and is completely unworkable.

"British Steel is already putting staff at risk by making them work overtime every single week. Cutting hundreds of jobs in this situation will endanger workers by pushing them to work even longer hours in extreme temperatures.

"Steelworkers played their part to protect our steel industry and are being failed by both the Government and British Steel who are abdicating their responsibilities to the workforce and our country.

"British Steel should urgently clarify its position and know that we will use any means at our disposal to fight this dangerous plan."

Downing Street has described the reports of redundancies as concerning.

The Prime Minister's official spokesman said: "Any reports of prospective job losses would be of concern. I can't necessarily comment on speculation but the Government always stands ready to provide or signpost assistance for anyone who needs it.

"In terms of long-term support for UK steel this is a Government that has taken a number of steps in this space."

British Steel has declined to comment.

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