Government secures future of British Steel with £500 million rail deal
It comes weeks after emergency government action saved its Scunthorpe plant from closure
Last updated 17th Jun 2025
Thousands of manufacturing jobs have been secured after a major rail deal was finalised at Scunthorpe steelworks today.
Transport Secretary Heidi Alexander confirmed a £500 million contract between Network Rail and British Steel—just two months after emergency government action stopped the plant’s blast furnaces from closing.
The five-year deal will see over 337,000 tonnes of rail track supplied, marking a major step in securing Scunthorpe’s future and strengthening UK industry.
The Network Rail contract—estimated at £500 million—begins on 1 July and will supply 80% of the organisation’s rail needs.
It’s part of a wider deal to deliver nearly 450,000 tonnes of rail over five years and supports the Government’s £2.5 billion steel fund aimed at revitalising UK steel production.
Transport Secretary Heidi Alexander said:
"This landmark contract truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe, building on its decades-long partnership with Network Rail to produce rail for Britain's railways.
"After taking urgent action to step in and save these historic blast furnaces from closure, we've now helped secure their long-term future by backing British Steel with meaningful Government contracts, protecting thousands of skilled manufacturing jobs in the process.
"This crucial investment in our railway infrastructure shows we are delivering on our Plan for Change commitment to raise living standards in every part of the UK and ensure economic growth is felt by working people in our proud industrial heartlands."
Business Secretary Jonathan Reynolds said:
“This is great news for British Steel and a vote of confidence in the UK’s expertise in steelmaking, which will support thousands of skilled jobs for years to come.
“Following our decisive action to step in and save steelmaking at Scunthorpe in April, this contract will give the sector the security to supply the steel we need for the infrastructure of the future, as part of our Plan for Change.”