Efforts to prevent the closure of Scunthorpe’s blast furnaces have intensified, with the UK government stepping in to temporarily halt British Steel’s plans to shut down the site. The company’s Chinese owner, Jingye, announced proposals to close both blast furnaces due to reported losses of approximately £700,000 per day. The move would put around 2,700 jobs at risk and mark the end of 160 years of steel production in the town.
The announcement has triggered widespread concern across the Humber region, including Beverley, Hull, and the East Riding, where many workers either commute to the steelworks or are employed by businesses connected to its supply chain. Local authorities have begun assessing potential economic impacts on these communities.
Last week, MPs passed emergency legislation allowing the government to assume temporary control of operations at the Scunthorpe site. This legal step, designed to prevent an immediate shutdown, is intended to give ministers more time to explore longer-term options for the plant’s future.
According to sources, British Steel is in talks with the government about the transition to electric arc furnace (EAF) technology. These furnaces, which use recycled scrap steel instead of iron ore, are being considered as a lower-emissions alternative. However, there are ongoing discussions about whether EAFs can produce the same quality of steel currently made in Scunthorpe, which is used in infrastructure, rail, and defence.
Union representatives have warned of significant knock-on effects across the region if the site closes. One official described the steelworks as “a major employer not just for Scunthorpe, but for families across East Yorkshire.” Businesses in Beverley and Hull involved in engineering, haulage, and fabrication have said they are closely watching developments, citing dependence on steel supply from the site.
Next Steps from Politicians
Business Secretary Jonathan Reynolds has been involved in high-level talks with both Jingye and union leaders. The government is said to be exploring whether state support or a new investment framework could help modernise the plant and make operations financially viable. Reynolds has emphasized the strategic importance of maintaining domestic steel production, warning that without intervention, the UK would become the only G7 country unable to produce steel from scratch, impacting critical industries and national security.
Meanwhile, Labour has said it would pursue a longer-term industrial strategy if elected, including public investment in steel and green technologies. Local MPs from both main parties have called for the site to be treated as a “strategic national asset,” with cross-party pressure building for a permanent solution.
Over the coming weeks, civil servants will continue working on contingency plans. Officials have confirmed that operations at the furnaces will continue during this period while options are assessed. No final agreement has yet been reached between the government and British Steel on the long-term future of the site.
For now, production continues. But without a clear resolution, uncertainty remains for thousands of workers and communities across the Humber that depend on the plant.