Parliament is to be recalled tomorrow (Saturday) to debate an emergency law to save British Steel’s plant in Scunthorpe from imminent closure.

The bill will give the prime minister the power to “direct steel companies in England.”

Talks have been taking place this week to keep production going at the firm, after its Chinese owner, Jingye, said its blast furnaces were “no longer financially sustainable”.

Ministers are reportedly seeking immediate powers to control the site so it can ensure it has enough raw materials to keep operating.

Andy Prendergast, national secretary of the GMB union said: “We are currently running against the clock in terms of the blast furnaces. If they go off, they are gone.”

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Government sources have said production could cease at the plant within weeks if the raw materials used to produce steel in two blast furnaces were not paid for soon.

Downing Street says legislation would give ministers power to “protect” the site, which employs 2,700 people.

MPs left Westminster for their Easter break on Tuesday, and were not due to return until 22 April.

At a second stage, after Easter, parliament could be asked to give the government the power to nationalise the company.

The BBC reported earlier this week that the government had offered to pay for the coal necessary to keep the blast furnaces going. It’s understood that the offer, which was put in writing, was considered by the Chinese owners.

A meeting between government officials and Jingye on the future of the UK’s last virgin steel plant was held virtually on Thursday, but sources said issues under discussion remained unresolved.

A Downing Street spokesperson said a Steel Industry (Special Measures) Bill would allow the government to “preserve capability and ensure public safety” at the site.

“It also ensures all options remain viable for the future of the plant and the livelihoods it supports,” they added.

The GMB trade union has also raised concerns about Jingye’s management of the plant.

Jingye, which bought British Steel in 2020, says it has been suffering financial losses of around £700,000 a day.

A mandatory 45-day consultation on plans to shed jobs began last month, blaming “highly challenging” market conditions, tariffs and costs associated with lower-carbon production techniques.

Industry body UK Steel has warned that ending production at the Scunthorpe site, which employs 2,700 people, would see the UK lose strategically vital steelmaking capabilities.

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