Government reportedly close to 300 million pound grant for Scunthorpe Steelworks
The money will support it and other British Steel sites
The Government's reportedly close to agreeing a 300-million-pound rescue package which would secure the future of Scunthorpe steelworks.
The grant will support it and other British Steel sites across the country.
The company is Britain's second biggest steel producer and a major employer in the town.
It's understood Chancellor Jeremy Hunt has been advised by officials to approve a request for public money.
It would help avoid job losses and require British Steel's Chinese owner to reduce its carbon footprint.
Chinese owners could be asked to invest a billion in the business
An announcement's expected in the coming days and the money would be directly linked to a replacement for the blast furnaces at the Scunthorpe site.
Sky News says it's learnt that Jeremy Hunt, the chancellor, has been advised by officials to approve a request from British Steel for public money following an intervention by Grant Shapps, the business secretary, and Michael Gove, the levelling-up secretary.
Jingye Group, British Steel's Chinese owner, would also be obliged to invest at least £1bn in the business by 2030 and make commitments relating to job retention, the person added.
If those conditions are not met, the Treasury could still decide not to proceed with the funding.
Warning British Steel would not have a business without Government support
Sky News revealed last month that Mr Shapps and Mr Gove had written to the chancellor to seek approval for the package of financial support.
The broadcaster says a decision to grant it will not be without controversy, given British Steel's Chinese ownership and doubts about its adherence to financial commitments made when it bought the business out of insolvency proceedings in 2020.
In their December letter to the chancellor, his cabinet colleagues warned that British Steel's demise could cost the government up to £1bn in decommissioning and other liabilities.
They cautioned Mr Hunt that British Steel "does not have a viable business without government support".
"Closing one blast furnace would be a stepping-stone to closure of the second blast furnace, resulting in a highly unstable business model dependent on Chinese steel imports," Mr Shapps and Mr Gove wrote.
"Given the magnitude of the liabilities due to fall on HMG in the event of blast furnace closure, and following the PM's steer, we would like officials to test whether net Government support in the region of £300m for British Steel could prevent closure, protect jobs and create a cleaner viable long-term future for steel production in the United Kingdom.