British Steel has officially withdrawn plans to make up to 2,700 workers at its Scunthorpe plant redundant, following an emergency intervention by the UK government earlier this month that secured the company’s immediate future.
The move ends a period of intense uncertainty for employees at the Lincolnshire steelworks, after Chinese-owned parent company Jingye announced its intention to close the site’s two blast furnaces—Queen Anne and Queen Bess—effectively ending primary steelmaking in the UK.
In response, ministers took swift and decisive action, recalling parliament to pass emergency legislation granting powers to assume temporary control of the company and continue operations at the strategically important site.
British Steel confirmed on Tuesday that it has formally closed the redundancy consultation process, with interim chief commercial officer Lisa Coulson acknowledging the toll on the workforce: “This has been a difficult and worrying time for British Steel staff and their families. I can, however, confirm that we are closing the redundancy consultation without action.”
Coulson added that efforts had been focused on securing supplies of coking coal and other essential materials, enabling both furnaces to continue operating and averting the need for a “salamander tap”—a last-resort process to drain molten metal from an idled furnace.
The government’s fast-tracked intervention included securing critical raw material shipments and putting in place operational safeguards to maintain production, avoiding an irreversible shutdown that could have crippled British steelmaking.
Industry minister Sarah Jones praised the efforts: “The action this government took on 12 April, and the measures we’ve taken since, matter greatly for this country and are of huge importance to thousands of steelworkers and their families. We will always stand up for our steel industry.”
The Unite union welcomed the decision to reverse the job cuts and used the opportunity to call for more radical reform. “Unite are pleased that British Steel have come to their senses and realised that job losses are not the way to ensure Britain remains an industrial power,” the union said. “This should be just the first step to begin the process of nationalisation.”
Community Union’s national secretary for steel, Alun Davies, also hailed the outcome as a collective victory: “We welcome these positive developments, which follow constructive discussions between steel unions, the Labour government and British Steel management. Through this collective effort, backed up by the commitment and resolve of the workforce, Scunthorpe steelmaking was saved from a disastrous cliff edge.”
Looking ahead, trade unions are calling for long-term investment in steel production and energy infrastructure, with a particular focus on decarbonisation and renewable energy as a means to lower costs and ensure the industry’s sustainability.
The government’s actions have provided a temporary reprieve for the UK’s primary steelmaking capability, but questions remain about long-term ownership, strategy, and the viability of ageing blast furnaces as the industry confronts global competition and the transition to greener technologies.
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British Steel scraps redundancy plans after government intervention saves Scunthorpe site