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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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Easing trade and signing a defence pact would be manifesto promises delivered – and Starmer could use a win

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Easing trade and signing a defence pact would be manifesto promises delivered - and Starmer could use a win

This EU-UK summit has for months been openly billed by Sir Keir Starmer’s Downing Street as a hugely significant moment for this government.

The Labour leader promised in his 2024 election manifesto that the UK would sign a new security pact with the EU to strengthen cooperation and improve the UK’s trading relationship with the continent.

Since winning power in July, he has embarked on a charm offensive across European capitals in a bid to secure that better post-Brexit deal.

Monday is when the PM makes good on those promises at a historic summit at Lancaster House in London.

Read more: What exactly could the UK-EU reset look like?

There, the EU and UK are expected to sign a security and defence partnership, which has taken on a new sense of urgency since the arrival of President Trump in the White House.

It is an agreement that will symbolise the post-Brexit reset, with the PM, European Commission president Ursula von der Leyen and European Council president Antonio Costa also signing off on a communique pledging deeper economic cooperation.

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But, rather like the torturous Brexit negotiations I covered for years in London and Brussels under Conservative prime ministers, Sir Keir’s post-Brexit reset went down to the wire.

Discussions continued over night as the two sides snared up over details around fisheries, food trade and youth mobility.

It’s not that both sides did not want the reset: the war in Ukraine and the spectre of the US becoming an unreliable partner have pushed London and Brussels closer together in their common defence interest.

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Fishing and youth mobility – the two snags

But the pressure for this deal weighed more heavily on our prime minister than his European colleagues. He’s been talking for months about securing a reset and better trading relationship with the EU to bolster the UK economy.

His need to demonstrate wins is why, suggests one continental source, the Europeans let talks go to the wire, with London and Brussels in a tangle over fishing rights – key demands of France and the Netherlands – and a youth mobility scheme, which is a particular focus for Berlin.

In the end, the UK allowed EU fishing boats access to British waters 12 years.

“The British came with 50 asks, we came with two – on fishing and the youth mobility scheme,” says one European source.

EU sources say Brussels had offered a time-limited deal to lift checks on animal products – replicating London’s offer on fisheries – but the UK is reluctant to do this as it leaves too much uncertainty for farmers and supermarkets.

Donald Tusk, Friedrich Merz, Emmanuel Macron and Keir Starmer talk to the press after their meeting.
Pic: Reuters
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Poland’s Prime Minister Donald Tusk, Germany’s Chancellor Friedrich Merz, France’s President Emmanuel Macron and Sir Keir Starmer talk to the press after their meeting on May 16, 2025 Pic: Reuters

Scotland election weighing on talks

A deal on food products, known as sanitary and phytosanitary (SPS) goods, would be a boost for the economy, with potentially up to 80% of border checks disappearing, given the breadth of products – paint, fashion goods, leather as well as foods – with an animal component.

Any deal also means the UK would have to align with rules made in Brussels and make a financial contribution to the EU to fund work on food and animal standards.

Both elements will trigger accusations of Brexit “betrayal”, as the UK signs up as a “rule taker” and finds itself paying back into the EU for better access.

Government figures had been telling me how they are more than prepared to face down the criticisms thrown at them from the Conservatives.

But sensitivities around fishing, particularly in Scotland, where Labour is facing elections next year, weighed on talks.

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The other area of huge tension was over a youth mobility scheme, which would enable young adults from member states to study and work in the UK and vice versa.

Government sources familiar with the talks acknowledge some sort of scheme will be included, but want details to be vague – I’m told it might be “an agreement about a future agreement”, while the EU sees this a one of its two core demands.

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European leaders gather in Ukraine

In talks late on Sunday night, the UK government appeared to be softening on re-opening the pre-Brexit Erasmus student exchange scheme as perhaps a way to get around the impasse, according to one EU source.

The UK rejoining this scheme had been rebuffed by Sir Keir last year, but was raised again last night in talks, according to a source.

Common ground on defence and security

Wherever the economic horsetrading lands, the two sides have found common ground in recent months is on defence and security, with the UK working in lockstep with European allies over Ukraine and relationships deepening in recent months as Sir Keir Starmer has worked with President Macron and others to try to smooth tensions between Kyiv and Washington and work on a European peace deal for Ukraine.

The expectation is that the two sides will sign a security partnership that will reiterate the UK’s commitment to build up the continent’s defence capability and stand united against Russian aggression with its partners.

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Five years of Brexit explained

The deal should also mean British arms companies will be able to access the EU’s €150bn rearmament programme, which has been set up to create a massive surge in defence spending over the next five years as Europe prepares itself to better repel threats.

It is clearly in neither side’s interest for Monday to go wrong.

The EU and UK need to maintain a united front and, more importantly for Keir Starmer domestically, the PM needs to show an increasingly sceptical public he can deliver on his promises.

Easing trade barriers with Britain’s biggest trading partner and signing an EU defence pact would be two manifesto promises delivered.

And with his popularity sinking to a record low in recent days, he could really do with a win.

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Post-Brexit EU reset negotiations ‘going to the wire’, says minister

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Post-Brexit EU reset negotiations 'going to the wire', says minister

Negotiations to reset the UK’s post-Brexit relationship with the EU are going “to the wire”, a Cabinet Office minister has said.

“There is no final deal as yet. We are in the very final hours,” the UK’s lead negotiator Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips.

On the possibility of a youth mobility scheme with the EU, he insisted “nothing is agreed until everything is”.

“We would be open to a smart, controlled youth mobility scheme,” he said. “But I should set out, we will not return to freedom of movement.”

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The government is set to host EU leaders in London on Monday.

Put to the minister that the government could not guarantee there will be a deal by tomorrow afternoon, Mr Thomas-Symonds said: “Nobody can guarantee anything when you have two parties in a negotiation.”

But the minister said he remained “confident” a deal could be reached “that makes our borders more secure, is good for jobs and growth, and brings people’s household bills down”.

“That is what is in our national interest and that’s what we will continue to do over these final hours,” he said.

“We have certainly been taking what I have called a ruthlessly pragmatic approach.”

On agricultural products, food and drink, Mr Thomas-Symonds said supermarkets were crying out for a deal because the status quo “isn’t working”, with “lorries stuck for 16 hours and food rotting” and producers and farmers unable to export goods because of the amount of “red tape”.

Asked how much people could expect to save on shopping as a result of the deal the government was hoping to negotiate, the minister was unable to give a figure.

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On the issue of fishing, asked if a deal would mean allowing French boats into British waters, the minister said the Brexit deal which reduced EU fishing in UK waters by a quarter over five years comes to an end next year.

He said the objectives now included “an overall deal in the interest of our fishers, easier access to markets to sell our fish and looking after our oceans”.

Turning to borders, the minister was asked if people would be able to move through queues at airports faster.

Again, he could not give a definitive answer, but said it was “certainly something we have been pushing with the EU… we want British people who are going on holiday to be able to go and enjoy their holiday, and not be stuck in queues”.

PM opens door to EU youth mobility scheme

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – and Prime Minister Sir Keir Starmer has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

The European Commission has proposed opening negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK. The scheme would allow both UK and EU citizens aged between 18 and 30 years old to stay for up to four years in a country of their choosing.

Earlier this month, Home Secretary Yvette Cooper told Phillips a youth mobility scheme was not the approach the government wanted to take to bring net migration down.

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Lack of UK training ‘big driver of net migration’

When this was put to him, Mr Thomas-Symonds insisted any deal on a youth mobility scheme with Europe will have to be “smart” and “controlled” and will be “consistent” with the government’s immigration policy.

Asked what the government had got in return for a youth mobility scheme – now there had been a change in approach – the minister said: “It is about an overall balanced package that works for Britain. The government is 100% behind the objective of getting net migration down.”

Phillips said more than a million young people came to the country between 2004 and 2015. “If there isn’t a cap – that’s what we are talking about,” he said.

The minister insisted such a scheme would be “controlled” – but refused to say whether there would be a cap.

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‘It’s going to be a bad deal’

Shadow cabinet office minister Alex Burghart told Phillips an uncapped youth mobility scheme with the EU would lead to “much higher immigration”, adding: “It sounds very much as though it’s going to be a bad deal.”

Asked if the Conservatives would scrap any EU deal, he said: “It depends what the deal is, Trevor. And we still, even at this late stage, we don’t know.

“The government can’t tell us whether everyone will be able to come. They can’t tell us how old the young person is. They can’t tell us what benefits they would get.

“So I think when people hear about a youth mobility scheme, they think about an 18-year-old coming over working at a bar. But actually we may well be looking at a scheme which allows 30-year-olds to come over and have access to the NHS on day one, to claim benefits on day one, to bring their extended families.”

He added: “So there are obviously very considerable disadvantages to the UK if this deal is done in the wrong way.”

Jose Manuel Barroso, former EU Commission president, told Phillips it “makes sense” for a stronger relationship to exist between the European Union and the UK, adding: “We are stronger together.”

He said he understood fishing and youth mobility are the key sticking points for a UK-EU deal.

“Frankly, what is at stake… is much more important than those specific issues,” he said.

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Gary Lineker to leave BBC next week and will no longer host World Cup coverage in 2026

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Gary Lineker to leave BBC next week and will no longer host World Cup coverage in 2026

Gary Lineker is to leave the BBC after this season’s final Match Of The Day and will no longer present its coverage of the World Cup, Sky News understands.

It comes after he “apologised unreservedly” for a social media repost featuring a rat – used in propaganda by Nazi Germany to dehumanise Jewish people – and said he would “never knowingly share anything antisemitic”.

Lineker’s last appearance on the BBC will be on 25 May, the final day of the season, with confirmation expected on Monday.

The former England star announced in November he would step down from Match Of The Day this year, but was set to return to front the World Cup in 2026, as well as FA Cup coverage.

Lineker, 64, said he was unaware the post he shared was antisemitic and it went against “everything I believe in”.

In response to the presenter resharing the post, the Campaign Against Antisemitism said his “continued association with the BBC is untenable”.

And when asked about Lineker last week, BBC director general Tim Davie said: “When someone makes a mistake, it costs the BBC reputationally.”

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The presenter was temporarily suspended from the BBC in March 2023 after an impartiality row over comments he made criticising the then Conservative government’s asylum policy.

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Lineker has hosted Match Of The Day since 1999 and has been the BBC’s highest-paid on-air talent for seven consecutive years. He also has a successful podcast production company.

Kelly Cates, Mark Chapman and Gabby Logan, who have been announced as new Match of the Day presenters.
Pic BBC/PA
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Kelly Cates, Mark Chapman and Gabby Logan will share the role of presenting Match of the Day. Pic BBC/PA

Mark Chapman, Kelly Cates and Gabby Logan will take over the highlights show from next season.

When the trio take over as hosts, it will be the first time the role has been shared by three people.

Sky News has contacted the BBC for comment.

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