First, my thoughts are, and the thoughts of all hon. Members will be, with British Steel workers and their families, following the company’s announcement of plans to close the blast furnaces and other steelmaking assets at Scunthorpe, and its commercial decision to consult on redundancies. This is not what we wanted, and I know how worrying it will be for all those involved. I am grateful to my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin), who is in his constituency today engaging directly with his local community.
In the immediate term, we must support the people who work at British Steel. Our contingency plans have kicked in to ensure that all possible support is made available to British Steel’s workforce. Both the Department for Work and Pensions and the Department for Education will have teams on the ground shortly to engage with employees for as long as necessary. We have asked British Steel that officials be given direct access to British Steel sites to bring their support as close as possible to affected workers.
This Government inherited a steel sector in crisis, and resolving the long-standing uncertainty around the future of Scunthorpe has been a priority from our first days in office. That is why, when we committed up to £2.5 billion of investment to support our steel industry, we earmarked substantial funding to support British Steel, in addition to the funding allocated to our new and improved deal with Tata Steel.
I confirm today that we have taken another significant step forward. On Monday, my right hon. Friend the Business and Trade Secretary made a generous conditional offer of financial support to British Steel designed to deliver a sustainable future for the workforce, industry and local communities. In the light of the challenging fiscal context, this speaks volumes about our commitment to the steel industry. The offer follows months of intensive engagement with British Steel to reach a deal that meets our public accountability and legal requirements, works for local people and UK taxpayers, safeguards as many jobs as possible and ensures the company’s long-term commercial viability. The offer that we have made is conditional on British Steel meeting those key tests, which is consistent with our approach to similar investment deals.
The company must provide the commitments that we need, and which taxpayers would quite rightly expect, in exchange for substantial public funding. It is regrettable that it has not yet done so or accepted our offer. I therefore call on the company to reconsider its plans to announce early closures, accept our conditions and accept our generous offer, which remains on the table.
I assure the House that we are working tirelessly to find a solution. We believe that there is a bright future for steelmaking in the UK, and we call on British Steel to work in partnership with a Government who care deeply about the steel sector to put the business on a sustainable footing for the future and to put an end to the years of uncertainty at Scunthorpe.