Parliament is being recalled so MPs can debate draft legislation to “protect” the British Steel plant in Scunthorpe, Number 10 has said.

MPs are being summoned back from Easter recess to Westminster, and will sit from 11am on Saturday, the House of Commons confirmed.

The news comes as the government has been actively considering nationalising British Steel after Jingye, its owner in Scunthorpe, cancelled future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.

Union officials have told Sky News that British Steel’s blast furnaces at Scunthorpe, the last blast furnaces left operating in Britain, will run out of raw material soon unless more can be sourced.

This has led to fears the Scunthorpe plant could be forced to close as early as next month.

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More than half of British Steel’s 3,500-strong workforce is being put at risk amid the impasse over a government funding package for the UK’s second-biggest steel producer.

The accountancy firm EY is being lined up by the government to play a role in the emergency nationalisation of British Steel, Sky News understands.

A Number 10 spokesperson 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.”

The spokesperson added: “We have always been clear there is a bright future for steel in the UK. All options remain on the table.”

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

The last time parliament was recalled was on 18 August 2021 to debate the situation in Afghanistan.

This will be the 35th recall during a recess since 1948.

The House of Commons said Speaker Sir Lindsay Hoyle has granted a request from the government for parliament to be recalled at 11am on Saturday 12 April “to take forward legislative proposals to ensure the continued operation of British Steel blast furnaces is safeguarded”.

In a letter to MPs, Sir Lindsay said he was satisfied the “public interest” requires the recall.

It is understood the House of Lords will also be recalled.

The British Steel plant in Scunthorpe has the UK’s last operating blast furnaces.

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The government has been in negotiations with both British Steel and Jingye throughout the week with talks continuing on Friday.

This morning, Chancellor Rachel Reeves said that “all options remain on the table” in terms of saving British Steel.

Sir Keir Starmer had used the same line the day before, adding that demand for steel was “likely to go up, not down, which is why it’s very important to do everything we can”.

There have been calls from Reform for the company to be nationalised – though the Conservatives have said a “commercial solution” should be found instead.

Business and Trade Secretary Jonathan Reynolds and officials met with the chief executives of Jingye and British Steel on Wednesday for discussions on steelmaking in Scunthorpe.

A statement released after the meeting said: “Both sides welcomed continued cooperation in talks to find a way forward.

“The UK government thanked Jingye for their respect for the workforce during this process, and work continues at pace to find a resolution.”