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Britain’s second-biggest steel producer is kicking off a consultation that could lead to the closure of its two blast furnaces and more than half of its workforce losing their jobs – a move that will pile pressure on the government to improve an offer of taxpayer aid to the company.

Sky News has learnt that British Steel was on Thursday morning in discussions with trade unions about a redundancy process that could result in between 2,000 and 2,500 employees being axed out of a workforce of 3,500.

One trade union source said that meetings were taking place on Thursday morning, with a public statement about plans to accelerate the closure of Scunthorpe’s two blast furnaces emerging soon after.

The company said the consultations related to the closure of the blast furnaces, steelmaking operations and a reduction of steel rolling mill capacity in Scunthorpe.

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The launch of the redundancy consultation comes amid an impasse between Jingye Group, British Steel’s Chinese owner, over a government subsidy package to aid the company’s transition to greener steel production.

Sky News revealed on Wednesday that Jingye had this week rejected a £500m offer from the government.

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Sarah Jones, the industry minister, told MPs that talks were continuing, while an urgent question is expected to be answered in the House of Commons on Thursday.

The £500m proposal – aimed at facilitating the Scunthorpe-based group’s transition to green steel production – follows years of talks aimed at salvaging the future of the UK’s second-biggest producer.

Its scale is equivalent to the sum awarded to the larger Tata Steel as part of a £1.25bn package finalised last year.

Whitehall sources said that Jingye’s business plan would involve a smaller number of jobs being cut if a switch to electric arc furnaces took place, with the redundancies also staggered over a longer period.

However, the Chinese group has argued that that transition would only be possible with a larger sum of government funding, they added.

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Tariff threat: ‘We can’t let the steel industry die’

In a statement sent to Sky News, the Community union’s general secretary, Roy Rickhuss, said: “This is a dark day for our steel industry and for our country.

“We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late.

“Cruciallly, Jingye have not ruled out retaining the blast furnaces during a transition to low carbon steelmaking if they can secure the backing of the Government.

“The closures at Scunthorpe would represent a hammer blow to communities which were built on steel, and where the industry still supports thousands of jobs directly and thousands more through extensive supply chains.

“Given that we are now on the cusp of becoming the only G7 country without domestic primary steelmaking capacity, it is no exaggeration to say that our national security is gravely threatened.

“This would be catastrophic at any time, let alone in the current era of geopolitical instability and volatility. Steel is an essential component of defensive infrastructure, just as it is to wider plans to invest in growth across the country.

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Sept: UK’s biggest steelworks ceases production

The rejection of the £500m offer leaves Scunthorpe’s future on a knife-edge, although Whitehall sources said that all parties involved in the negotiations were hopeful that a deal could yet be struck.

However, the package offered so far falls well short of the sum that Jingye has been seeking from the government during several rounds of talks since Labour won last summer’s general election.

The Chinese-owned group is thought to have requested £1bn or more from ministers – double the amount handed to Tata Steel, owner of the Port Talbot steelworks in South Wales, last autumn.

British Steel, which was taken over by Jingye in 2020 after a spell in public ownership, employs several thousand people at its sites in Scunthorpe, Teesside and elsewhere.

It has been pushing for taxpayer funding to support a transition to green steelmaking by replacing Scunthorpe’s two blast furnaces with cleaner electric arc furnaces.

Reports late last year suggested that nationalisation was an option being explored by ministers.

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Impact of Trump’s steel tariffs

The government’s proposal comes at a deeply sensitive time for Britain’s steel industry, with fears of swingeing US tariffs exacerbating concerns that the sector’s viability will be put at risk.

Last month, Mr Reynolds published the government’s Plan for Steel consultation, which will include up to £2.5bn in funding for the industry, in line with a commitment in last year’s Labour election manifesto.

“The UK steel industry has a long-term future under this government,” he said.

“Britain is open for business, and this government has committed up to £2.5bn to the future of steel to protect our industrial heartlands, maintain jobs, and drive growth as part of our Plan for Change.”

During the same month, Mr Reynolds held further talks with Jingye Group’s boss, Li Huiming, in the latest chapter of a negotiation which has been dragging on for more than two years.

British Steel was bought by Jingye the year after it was placed into compulsory liquidation.

The company had been owned by private investment firm Greybull Capital.

British Steel CEO, Mr Zengwei An, said: “We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel.

“But we believe this is a necessary decision given the hugely challenging circumstances the business faces.

“We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.”

Business and Trade Secretary Jonathan Reynolds responded: “I know this will be a deeply worrying time for staff and, while this is British Steel’s decision, we will continue working tirelessly to reach an agreement with the company’s owners to secure its future and protect taxpayers’ money.

“We’ve been clear there’s a bright future for steelmaking in the UK. We’ve committed up to £2.5bn to rebuild the sector and will soon publish a Plan for Steel setting out how we can achieve a sustainable future for the workforce, industry and local communities.”

Unite general secretary Sharon Graham described the company’s move as a “disgrace”

She said: “British Steel is guilty of trying to hold the government to ransom, while using its dedicated workforce as pawns… British Steel must now withdraw its job threats and work with the government and Unite on a sustainable way forward which is in the best interests of the workers, their communities and the wider economy.”

Ben Houchen, the Tees Valley Mayor, said of the impact: “This is devastating for Britain. Losing our ability to make steel in a world as insecure as this is not just short-sighted, it’s dangerous.

“We had a serious deal on the table to bring an electric arc furnace to Teesside. It would have secured jobs, attracted investment, and delivered a long-term future for green steelmaking in the UK. For whatever reason, that deal was quietly dropped. Instead, we ended up with unworkable proposals in Scunthorpe that were politically convenient but strategically and economically flawed.

“I’ve worked constructively with the Labour Government throughout, but I warned them repeatedly: the path they were on would end in collapse. Today, we’ve seen the result.”

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Government looking at other countries to process asylum seekers in, home secretary says

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Government looking at other countries to process asylum seekers in, home secretary says

The government is looking at other countries it could process asylum seekers in, Home Secretary Yvette Cooper has told Sky News.

Speaking to Sunday Morning With Trevor Phillips, Ms Cooper said the government has been talking to Italy about its arrangements with Albania and with the EU Commission about other options.

Ms Cooper said she has been speaking to the Italian interior minister about their deal, which means asylum seekers wanting to settle in Italy will be processed in Albania.

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A group thought to be migrants are brought in to Dover after a small boat incident in the Channel on 27 March. Pic: PA
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A group thought to be migrants are brought in to Dover after a small boat incident in the Channel on 27 March. Pic: PA

Asked if she wants the same deal for the UK, following reports the government is looking at a deal with Albania, Ms Cooper said: “We will always look at what works.

“There has to be practical things that will work, not gimmicks.”

She criticised the Conservative government’s Rwanda deal, which was meant to see UK asylum seekers processed in Rwanda. It cost £700m but only saw four volunteers sent there.

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Former Labour home secretary Lord Blunkett has suggested the government should create bespoke agreements with designated “safe” countries to deport foreign criminals and illegal immigrants, as this would override any claims through the Convention on Human Rights (ECHR).

Inside two of Italy's controversial migrant centres in Albania
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Italy has opened migrant centres in Albania

Asked about that, and whether the UK is talking to Albania or any other countries about an “Italian-style deal”, Ms Cooper said: “We’ve talked to the Italian government about the arrangements that they have, and we’ve always said we’ll look at what works.

“We’re also talking to the EU Commission who are interested in different approaches around return hubs, that’s the kind of thing that you’re talking about.

“But our central focus is on the borders, the summit, the organised immigration crime summit and on tackling the criminal gangs.”

Read more:
Gig company bosses who fail to check employees’ immigration status could face jail
Italian court deals Albania migrant scheme another blow

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Labour ‘deports 19,000 migrants’

The UK is hosting an “unprecedented” border security summit on Monday with interior ministers and law enforcement from more than 40 countries, Ms Cooper said.

She said the summit was necessary because illegal immigration is a “global problem”.

“The criminal gang networks that end up with people arriving in the UK, stretch back through northern France, through Germany, across Europe, to places like the hills of Kurdistan or the money markets in Kabul,” the home secretary said.

“So you need to tackle this as a global problem.”

Ms Cooper added that the government has got new agreements with France and the French government has changed the rules so its police force will now “take action” in the Channel to prevent migrants crossing to the UK in small boats.

STARMER MELONI
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Italian prime minister Giorgia Meloni with Sir Keir Starmer in Downing Street in March

Sir Keir Starmer has pledged to “smash the gangs”, which Ms Cooper said can be seen through the 20% increase in migrant returns since Labour was voted in last summer, a 40% increase in illegal working raids and a 40% increase in arrests for illegal working.

The Home Office announced on Sunday that company bosses hiring in the gig economy could face up to five years in prison if they fail to check if their employees can legally work in the UK.

Ms Cooper told Sunday Morning With Trevor Phillips: “Frankly, it is too easy at the moment for employers to take people on illegally through those contract mechanisms without those checks in place.”

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Charity boss says Prince Harry asked for public message of support for Meghan after polo fundraiser ‘went badly’

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Charity boss says Prince Harry asked for public message of support for Meghan after polo fundraiser 'went badly'

The chair of a charity set up by Prince Harry says he asked for a public message of support for Meghan after a polo fundraiser “went badly”.

In a wide-ranging interview with Sky News’ Trevor Phillips, chair of Sentebale Dr Sophie Chandauka also claimed:

• The charity lost sponsors and donors when the Sussexes left the UK – but she wasn’t allowed to discuss the problem
• Harry is the “number one risk” to the charity
• He tried to “eject” her from the organisation
• He would appoint board members without consulting her

Sentebale was set up by the prince in 2006 in memory of his mother, Princess Diana, to help young people with HIV in Lesotho and Botswana.

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Full interview with Sophie Chandauka

Dr Chandauka has already accused the prince of “harassment and bullying at scaleby “unleashing” the Sussex PR machine – an allegation a source denied as “completely baseless”.

On Tuesday, Prince Harry quit as patron of the charity along with several other senior members after disagreements with the chair.

Polo fundraiser ‘went badly’

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In a full interview with Sunday Morning with Trevor Phillips, Dr Chandauka discussed Prince Harry’s filming of a Netflix show, which she said resulted in the charity losing the venue for an event they were holding.

She said the duke phoned her team, saying he’d like to bring a Netflix crew to the polo event.

She said the venue owners were originally “happy for us to use their polo grounds at a material discount”.

But as a result of the request, the price increased as it had become a commercial venture.

The charity was forced to pull out of the venue as it couldn’t afford the fee, according to Dr Chandauka, but then was “lucky enough” to find another through Prince Harry’s connections.

On the day, however, she claimed there were more problems.

“The duchess decided to attend, but she told us she wasn’t attending, and she brought a friend, a very famous friend,” Dr Chandauka said.

“The choreography went badly on stage because we had too many people on stage.

The Duchess of Sussex presented a trophy to Prince Harry after his team won a polo event in Wellington, Florida, in April 2024. Pic: PA
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The Duchess of Sussex presented a trophy to Prince Harry after his team won a polo event in Wellington, Florida, in April 2024. Pic: PA

“The international press captured this, and there was a lot of talk about the duchess and the choreography on stage and whether she should have been there and her treatment of me.”

She claimed the media attention around Meghan’s treatment of her prompted Prince Harry to ask Dr Chandauka to issue a statement in support of the duchess.

“I said I wouldn’t. Not because I didn’t care about the duchess, but because I knew what would happen if I did so, number one. And number two, because we cannot be an extension of the Sussexes,” she said.

A source close to the former trustees of the Sentebale charity described Dr Chandauka’s account of the polo match as “highly misleading”. Sky News also contacted Netflix, who declined to comment.

‘Number one risk’

Dr Chandauka was asked if the Duke of Sussex is the “number one risk” to the charity, and replied “yes”.

She added that when she asked why there was a loss of sponsors at the time the Sussexes left the UK, she was told: “It’s an uncomfortable conversation to have with Prince Harry in the room.”

“What you discovered was essentially, donors were walking because of the prince’s reputation?” asked Trevor Phillips.

“Yes,” Dr Chandauka replied.

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Prince Harry ‘unleashed Sussex machine’

She also accused the prince of trying to “eject” her from the organisation.

“There were board meetings where members of the executive team and external strategic advisors were sending me messages saying, ‘Should I interrupt?’, ‘Should I stop this?’ ‘Oh my gosh, this is so bad’,” she said.

“In fact, our strategic adviser for fundraising then sent me a message saying she wouldn’t want to ever attend any more board meetings or bring her colleagues because of the treatment.”

When she didn’t leave, Dr Chandauka suggested Prince Harry tried to force the failure of the charity he set up in his mother’s memory.

“Prince Harry started to brief, and his team, sponsors that I had been speaking to, against me and the charity, because that is a sure way of getting me out if it’s seen as though I’m not being successful in my fundraising efforts,” she said.

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‘This all came as a shock to me’

When asked about a Sky News interview with former trustee Dr Kelello Lerotholi who said he was “surprised” by her accusations about the prince, Dr Chandauka said she wasn’t “surprised that he didn’t know much of what was going on in the organisation”.

“He had the worst attendance record and even when he was in the meetings, he didn’t actually contribute that much,” she said.

‘Everybody’s shocked and quiet’

Dr Chandauka gave an example of the prince’s behaviour in board meetings.

“Prince Harry decides, on this specific occasion, that he wants to appoint an individual to the board, with immediate effect, without having talked to me,” she said.

“His proxy on the board says, ‘Yes, I second that motion’. The third proxy on the board says, ‘Welcome to the board, Brian’.

“And everybody’s shocked and quiet, but this is what happens when the prince is in the room and no one has the courage to speak.”

Sky News contacted the Duke and Duchess of Sussex about the contents of Sophie Chandauka’s interview with Trevor Phillips, and they declined to offer any formal response.

But the source close to the former trustees of the Sentebale charity has described as categorically false Dr Chandauka’s claims that Dr Lerotholi did not attend meetings and did not contribute much when he was in meetings and that the Duke of Sussex leaving the UK impacted the charity, caused it to lose sponsors, or that the duke posed the biggest risk to the charity.

The source also described as “completely baseless” Dr Chandauka’s claims that she was bullied and harassed, briefed against by Prince Harry, or that the Sussex machine was unleashed on her and that the people on the board of Sentebale were scared to speak up when the duke was in the room.

The claim that the press was informed about the royal patrons departure as trustees before the charity, has been described by the source as “categorically untrue”.

In response to Dr Chandauka’s claim that the Duke of Sussex was ‘forcing the failure’ of the charity ‘as a last resort’, the source pointed to the public statement of Prince Harry and his co-founder of the Sentebale charity, Prince Seeiso of Lesotho, which read:

“It is devastating that the relationship between the charity’s trustees and the chair of the board broke down beyond repair, creating an untenable situation.

“These trustees acted in the best interest of the charity in asking the chair to step down, while keeping the wellbeing of staff in mind. In turn, she sued the charity to remain in this voluntary position, further underscoring the broken relationship.”

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Morning-after pill set to be made free from pharmacies in bid to end ‘unfair postcode lottery’

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Morning-after pill set to be made free from pharmacies in bid to end 'unfair postcode lottery'

The morning-after pill could become free from pharmacies in order to end an “unfair postcode lottery”, according to a health minister. 

The morning-after pill is a type of emergency contraception taken to prevent an unwanted pregnancy.

Despite its name, it can be taken up to five days after unprotected sex, but the sooner it is taken, the more effective it is.

Emergency contraception is free from most GPs and sexual health clinics, but pharmacies can charge up to £30.

Health minister Stephen Kinnock said women “face an unfair postcode lottery when seeking emergency contraception, with access varying dramatically depending on where they live”.

He described equal access to safe contraception as “a cornerstone of a fair society”.

The proposal, which will be announced on Monday as part of a wider investment in community pharmacies, would come into effect later this year.

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Why does PM want to scrap NHS England?

As well as making access to the pill more equal, it is hoped the plans will free up appointments for GPs as women will no longer have to book in to receive the medicine.

The government is making a raft of changes to the healthcare system, including scrapping NHS England, the administrative body that runs the national health service.

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