The raw materials needed to keep British Steel’s Scunthorpe plant operating have been paid for, Deputy Prime Minister Angela Rayner has said – but she would not be drawn on when they would arrive.
Officials have been racing to obtain enough iron and coal to keep the furnaces at the UK’s last virgin steel-producing plant going – because if they cool down too much, the molten iron solidifies and blocks the furnaces.
Business Secretary Jonathan Reynolds said the government had been prompted into action after learning that the firm had stopped ordering new raw materials to keep the plant running and planned on selling off supplies it already had.
Speaking to reporters from the site in Scunthorpe on Monday afternoon, Ms Rayner said: “We’ve got the raw materials, they’ve been paid for, and we’re confident that the furnaces will continue to fire.”
Asked whether the materials would be arriving on Monday, the deputy PM only said: “As I say, we’ve got the raw materials, and everything’s in place, and we’re confident that the furnaces will continue.”
Image: Angela Rayner views blast furnaces during her visit to the British Steel site in Scunthorpe. Pic: PA
Earlier, Exchequer Secretary to the Treasury James Murray told Sky News the raw materials were “in the UK” and “nearby” the Lincolnshire site.
He said there were “limits to what I can say” because there were “commercial operations going on here”.
The prime minister’s official spokesman said there were two ships carrying materials docked at Immingham port in North Lincolnshire, with “a third ship which is currently en route off the coast of Africa, which will be making its way to the UK”.
Ministers have faced questions over why they are only just acting now, given unions warned earlier this month that Jingye decided to cancel future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.
Parliament was recalled on Saturday so that emergency legislation could be passed bringing the steelworks into effective government control and officials were on site as soon as the new legislation came into force.
Ms Rayner would not be drawn on the long-term plan, nor whether other buyers were interested or whether it would come down to nationalisation.
She said: “We’ve taken nothing off the table. We’d like to see private investment going forward… we’re confident of the future of British Steel.”
‘No evidence of sabotage’
Ms Rayner said the government “hasn’t seen any evidence” of sabotage, when asked about suggestions that Jingye might have purposefully attempted to shut the blast furnaces down.
The Chinese company stepped in with a deal to buy British Steel’s Scunthorpe plant out of insolvency five years ago.
Mr Reynolds told MPs on Saturday that the intention of Jingye… “was to cancel and refuse to pay for existing orders” which would have “irrevocably and unilaterally closed down primary steelmaking at British Steel”.
Appearing on Sky News’ Sunday Morning With Trevor Phillips, the business secretary said he would not bring a Chinese company into the “sensitive” steel sector again.
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2:02
British Steel: What happens next?
Commenting on the situation for the first time on Monday, a Chinese embassy spokesperson urged the British government to act with “fairness, impartiality and non-discrimination… to make sure the legitimate rights and interests of the Chinese company be protected”.
“It is an objective fact that British steel companies have generally encountered difficulties in recent years,” it added.
Union officials have said they are “hopeful” that the materials required at the North Lincolnshire works will arrive within the next 48 hours.
However Andy Prendergast, national secretary at the GMB, said there still needs to be “a deal to be done for the future” and their preference is “nationalisation of what is a key national asset”.
The Conservatives accused the government of acting “too late” and implementing a “botched nationalisation” after ignoring warnings about the risk to the steelworks.
Shadow business secretary Andrew Griffith said: “The Labour government have landed themselves in a steel crisis entirely of their own making.
“They’ve made poor decisions and let the unions dictate their actions.”
Her comments followed the departure of the prince and several others from the organisation in March.
They had asked her to step down, alleging it was in the “best interest of the charity”.
Dr Chandauka told Sky News that Harry had “authorised the release of a damaging piece of news to the outside world” without informing her or Sentebale directors.
The Duke and Duchess of Sussex declined to offer any formal response.
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4:43
Why was Prince Harry accused of ‘bullying’?
‘Strong perception of ill-treatment’
The Charity Commission said it was reporting after a “damaging internal dispute emerged” and has “criticised all parties to the dispute for allowing it to play out publicly”.
That “severely impacted the charity’s reputation and risked undermining public trust in charities more generally”, it said.
But it found no evidence of “widespread or systemic bullying or harassment, including misogyny or misogynoir at the charity”.
Nevertheless, it did acknowledge the “strong perception of ill-treatment felt by a number of parties to the dispute and the impact this may have had on them personally”.
It also found no evidence of “‘over-reach’ by either the chair or the Duke of Sussex as patron”.
‘Confusion exacerbated tensions’
But it was critical of the charity’s “lack of clarity in delegations to the chair which allowed for misunderstandings to occur”.
And it has “identified a lack of clarity around role descriptions and internal policies as the primary cause for weaknesses in the charity’s management”.
That “confusion exacerbated tensions, which culminated in a dispute and multiple resignations of trustees and both founding patrons”.
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4:43
Why was Prince Harry accused of ‘bullying’?
Harry: Report falls troublingly short
A spokesperson for Prince Harry said it was “unsurprising” that the commission had announced “no findings of wrongdoing in relation to Sentebale’s co-founder and former patron, Prince Harry, Duke of Sussex”.
They added: “Despite all that, their report falls troublingly short in many regards, primarily the fact that the consequences of the current chair’s actions will not be borne by her, but by the children who rely on Sentebale’s support.”
They said the prince will “now focus on finding new ways to continue supporting the children of Lesotho and Botswana”.
Dr Chandauka said: “I appreciate the Charity Commission for its conclusions which confirm the governance concerns I raised privately in February 2025.”
But she added: “The unexpected adverse media campaign that was launched by those who resigned on 24 March 2025 has caused incalculable damage and offers a glimpse of the unacceptable behaviours displayed in private.”
All police forces investigating grooming gangs in England and Wales will be given access to new AI tools to help speed up their investigations.
The artificial intelligence tools are already thought to have saved officers in 13 forces more than £20m and 16,000 hours of investigation time.
The apps can translate large amounts of text in foreign languages from mobile phones seized by police, and analyse a mass of digital data to find patterns and relationships between suspects.
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2:00
Grooming gang inquiry: ‘Our chance for justice’
‘We must punish perpetrators’
The rollout is part of a £426,000 boost for the Tackling Organised Exploitation (TOEX) programme, which supports officers to investigate complex cases involving modern slavery, county lines and child sex abuse.
“The sexual exploitation of children by grooming gangs is one of the most horrific crimes, and we must punish perpetrators, provide justice for victims and survivors, and protect today’s children from harm,” said safeguarding minister Jess Phillips.
“Baroness Casey flagged the need to upgrade police information systems to improve investigations and safeguard children at risk. Today we are investing in these critical tools.”
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1:36
Key takeaways from the Casey review
Lack of ethnicity data ‘a major failing’
Police forces have also been instructed by the home secretary to collect ethnicity data, as recommended by Baroness Casey.
Her June report found the lack of data showing sex offenders’ ethnicity and nationality in grooming gangs was “a major failing over the last decade or more”.
She found that officials avoided the issue of ethnicity for fear of being called racist, but there were enough convictions of Asian men “to have warranted closer examination”.
The government has launched a national inquiry into the abuse and further details are expected to be announced in the coming weeks.
Rachel Reeves will need to find more than £40bn of tax rises or spending cuts in the autumn budget to meet her fiscal rules, a leading research institute has warned.
The National Institute of Economic and Social Research (NIESR) said the government would miss its rule, which stipulates that day to day spending should be covered by tax receipts, by £41.2bn in the fiscal year 2029-30.
In its latest UK economic outlook, NIESR said: “This shortfall significantly increases the pressure on the chancellor to introduce substantial tax rises in the upcoming autumn budget if she hopes to remain compliant with her fiscal rules.”
The deteriorating fiscal picture was blamed on poor economic growth, higher than expected borrowing and a reversal in welfare cuts that could have saved the government £6.25bn.
Together they have created an “impossible trilemma”, NIESR said, with the chancellor simultaneously bound to her fiscal rules, spending commitments, and manifesto pledges that oppose tax hikes.
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1:56
Could the rich be taxed to fill black hole?
Reeves told to consider replacing council tax
The institute urged the government to build a larger fiscal buffer through moderate but sustained tax rises.
“This will help allay bond market fears about fiscal sustainability, which may in turn reduce borrowing costs,” it said.
“It will also help to reduce policy uncertainty, which can hit both business and consumer confidence.”
It said that money could be raised by reforms to council tax bands or, in a more radical approach, by replacing the whole council tax system with a land value tax.
To reduce spending pressures, NIESR called for a greater focus on reducing economic inactivity, which could bring down welfare spending.
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1:40
What’s the deal with wealth taxes?
Growth to remain sluggish
The report was released against the backdrop of poor growth, with the chancellor struggling to ignite the economy after two months of declining GDP.
The institute is forecasting modest economic growth of 1.3% in 2025 and 1.2% in 2026. That means Britain will rank mid-table among the G7 group of advanced economies.
‘Things are not looking good’
However, inflation is likely to remain persistent, with the consumer price index (CPI) likely to hit 3.5% in 2025 and around 3% by mid-2026. NIESR blamed sustained wage growth and higher government spending.
It said the Bank of England would cut interest rates twice this year and again at the beginning of next year, taking the rate from 4.25% to 3.5%.
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Persistent inflation is also weighing on living standards: the poorest 10% of UK households saw their living standards fall by 1.3% in 2024-25 compared to the previous year, NIESR said. They are now 10% worse off than they were before the pandemic.
Professor Stephen Millard, deputy director for macroeconomics at NIESR, said the government faced tough choices ahead: “With growth at only 1.3% and inflation above target, things are not looking good for the chancellor, who will need to either raise taxes or reduce spending or both in the October budget.”