British Steel on verge of administration putting 24,000 jobs at risk

British Steel is on the verge of administration within 48 hours unless a rescue deal can be agreed with the government.

If additional funding cannot be secured 4,000 British Steel jobs would be put at risk along with a further 20,000 in its supply chain.

Union leaders are set for crunch talks with the government on Tuesday, with administrators EY expected to be called in as soon as Wednesday if a deal is not reached.

The company had asked for a package of support to tackle “Brexit-related” issues, raising fears for its future.

A collapse would hit workers at British Steel's main plant in Scunthorpe as well as sites in Cumbria, Teesside, Cumbria and North Yorkshire. Nationalisation or a management buyout are also understood to be under consideration.

Business Secretary Greg Clark is meeting with the Unite union early on Tuesday with more clarity expected in the next few hours.

British Steel's lenders, as well as shareholder Greybull Capital have agreed to put extra money into the company, according to Sky News.

The company is requesting £30m of government funding to allow it to continue, down from £75m previously.

Last week it announced it had the backing of its key stakeholders and that operations would continue as normal.

It said on Thursday: “We are pleased to confirm that we have the required liquidity while we work towards a permanent solution.”

A Unite spokesperson said: “We would urge Greybull to reach a deal with the Government. Thousands of jobs depend on the outcome.

“And we will be speaking with the Government first thing in the morning.”

In a statement, the Department for Business, Energy and Industrial Strategy (BEIS) said: "As the business department, we are in regular conversation with a wide range of companies."

British Steel could not be reached for comment.