Parliament is to be recalled tomorrow (Saturday 12) so MPs can vote on whether to nationalise British Steel.
Last month, Jingye, the Chinese owner of the UK’s only remaining blast furnaces said they were consulting on plans that could see the Scunthorpe steelmaking facility, which it said loses £700,000 per day, shut down.
Trade groups described the potential closure of the site as leading to a major gap in capacity for UK steel.
The steel industry has since been hit by 25 per cent tariffs on exports to the US.
A spokesperson for 10 Downing Street said: “The prime minister has been clear, his government will always act in the national interest. All actions we take are in the name of British industry, British jobs and for British workers.
“Tomorrow parliament will be recalled to debate the Steel Industry (Special Measures) Bill. The Bill provides the government with the power to direct steel companies in England, which we will use to protect the Scunthorpe site.
“It enables the UK Government to preserve capability and ensure public safety. It also ensures all options remain viable for the future of the plant and the livelihoods it supports.”
He added: “We have been negotiating with British Steel’s owners in good faith ever since coming to office. We have always been clear there is a bright future for steel in the UK. All options remain on the table.”
Gareth Stace, director general of trade body UK Steel, welcomed the move.
He said: “Recalling Parliament is the right decision to ensure that British Steel, the wider steel sector and the thousands of steel workers and their families are given the certainty they deserve in trying times.
“It is welcome news that government recognises the seriousness of the UK’s steel industry circumstances and the essential contribution our sector makes to the national economy and security, as well as the communities that rely on it.
“We look forward to further detail from government on its commitment towards a secure and stable steel sector.”
The GMB union, which represents workers at the Scunthorpe plant, also welcomed the move as a way of saving jobs.
It said: “GMB has long called for nationalisation as the only way to save the UK steel industry. Tomorrow looks like the first step in that process.
The business secretary must be given huge praise for acting decisively to safeguard this vital industry and thousands of jobs that rely on it.”
Chinese steelmaker Jingye bought British Steel out of receivership in March 2020, stating that it foresaw “a new illustrious chapter in the history of British steelmaking”.