Sky News reported that British government’s Treasury is close to agreeing a GBP 300 million aid package for the UK's second-biggest steel producer British Steel in a move aimed at reducing its carbon footprint and averting the loss of thousands of industrial jobs across northern England. Sky News has learnt that UK’s Chancellor Mr Jeremy Hunt has been advised by officials to approve a request from British Steel for public money following an intervention by UK’s Business Secretary Mr Grant Shapps Sky News quoted Whitehall sources as saying that “The government is expected to communicate a decision to the company in the coming days, which would see around GBP 300 million handed to it in instalments during the next few years. The funding would be directly linked to a project to replace British Steel's blast furnaces at its Scunthorpe site with a greener electric arc furnace. Jingye Group, British Steel's Chinese owner, would also be obliged to invest at least GBP 1 billion in the business by 2030 and make commitments relating to job retention” Commenting on the proposed funding package for British Steel, Labour's Shadow Business Secretary Mr Jonathan Reynolds said “The UK steel sector has been left on the brink as a result of the government's failure to come up with long-term solutions. Endless sticking plaster solutions from the Conservatives have left our UK steel sector on the brink. Instead of finding a long-term solution, successive Conservative governments have lurched from crisis and bailouts with no plan to keep UK steel internationally competitive or deliver a return on tax payers investment.” A decision to grant it will not be without controversy, given British Steel's Chinese ownership and doubts about its adherence to financial commitments made when it bought the business out of insolvency proceedings in 2020.
Sky News reported that British government’s Treasury is close to agreeing a GBP 300 million aid package for the UK's second-biggest steel producer British Steel in a move aimed at reducing its carbon footprint and averting the loss of thousands of industrial jobs across northern England. Sky News has learnt that UK’s Chancellor Mr Jeremy Hunt has been advised by officials to approve a request from British Steel for public money following an intervention by UK’s Business Secretary Mr Grant Shapps Sky News quoted Whitehall sources as saying that “The government is expected to communicate a decision to the company in the coming days, which would see around GBP 300 million handed to it in instalments during the next few years. The funding would be directly linked to a project to replace British Steel's blast furnaces at its Scunthorpe site with a greener electric arc furnace. Jingye Group, British Steel's Chinese owner, would also be obliged to invest at least GBP 1 billion in the business by 2030 and make commitments relating to job retention” Commenting on the proposed funding package for British Steel, Labour's Shadow Business Secretary Mr Jonathan Reynolds said “The UK steel sector has been left on the brink as a result of the government's failure to come up with long-term solutions. Endless sticking plaster solutions from the Conservatives have left our UK steel sector on the brink. Instead of finding a long-term solution, successive Conservative governments have lurched from crisis and bailouts with no plan to keep UK steel internationally competitive or deliver a return on tax payers investment.” A decision to grant it will not be without controversy, given British Steel's Chinese ownership and doubts about its adherence to financial commitments made when it bought the business out of insolvency proceedings in 2020.
