British Steel to end consultation on up to 2,700 redundancies after government intervention

British Steel has said it will end a consultation on up to 2,700 redundancies, after the government took control of the firm earlier this month.

An emergency bill to save British Steel's Scunthorpe blast furnaces became law after MPs were recalled to the House of Commons for an urgent debate on 12 April. It meant the steel plant in Scunthorpe, North Lincolnshire, continued to operate as the government decides on a long-term strategy, and steelmaking in the UK more broadly.

Money blog: M&S statement after UK contactless glitch The announcement that jobs are secure follows confirmation of a stable supply of raw materials and the appointment of new leadership at British Steel. The plant was due to run out of raw materials, requiring production to stop at Britain's only virgin steel furnace.

Other steelworks, such as in Port Talbot, Wales, produce steel from scrap metal using electric furnaces. What's been happening at British Steel? Chinese owner Jingye had cancelled its orders for raw materials.

It said the blast furnaces were "no longer financially sustainable" due to "highly challenging" market conditions, tariffs and costs associated with transitioning to lower-carbon production techniques. On paper, Jingye is the owner of British Steel, but the UK government has inserted itself into the inner workings of the company to legally override the wishes of the Chinese business.

Read more:100% chance Bank of England will cut interest rates next month, markets predict Tariffs imposed by President Trump put a 25% tax on all steel imports to the US, pushing up costs even further and sparking calls for countries to secure their own supplies of critical materials, especially those like steel used for defence and infrastructure. The Scunthorpe works are "vital for both the UK's national security and manufacturing.