Ministers mull bailout for struggling British Steel as 5,000 jobs on the line
Ministers will today discuss a potential bailout for one of Britain’s largest manufacturers, even as British Steel insists that it can keep trading for now.
The future was called into question this week as Brexit-related headwinds made it increasingly difficult to operate.
Read more: British Steel 'grateful' for support and has funds to keep trading
Sources confirmed to the BBC that discussions over a bailout reported to be around £75m will continue later today at “ministerial level”.
Yesterday the company insisted it could keep operating while it works towards a long-term solution.
“As the business navigates the significant uncertainties caused by Brexit, and explores options to strengthen the business for the long term, we are pleased to confirm that we have the required liquidity while we work towards a permanent solution,” a spokesperson said.
British Steel’s troubles were signposted just weeks ago, as it was handed £120m from the government to pay an EU carbon tax bill.
The business is owned by private equity house Greybull Capital and employs about 5,000 people, mainly in Scunthorpe.
It supports a further 20,000 jobs through its supply chain.
Earlier this week British Steel confirmed it was in discussions on how to “address broader Brexit-related issues”.
Read more: British Steel seeks further £75m loan from government to avert collapse
Scunthorpe’s Labour MP Nic Dakin on Tuesday blamed the government’s Brexit failures for the problems at the company.
“This is a sound business producing high quality steel. It is being hit by headwinds beyond its control so it is right and proper that the government should be working with the company,” he told Morning Wire