“ALL options remain on the table” for the future of British Steel, Chancellor Rachel Reeves said today as fears grew that its Scunthorpe plant could close next month.

The company’s Chinese owner, Jingye, has cancelled future orders for raw materials needed to keep the furnaces operational and British Steel has launched a formal consultation process.

Ms Reeves suggested that nationalisation could be a possibility, saying: “All options remain on the table regarding British Steel.

“This government recognises the importance of those jobs in Scunthorpe and in the local area and we’re doing everything we can to preserve those jobs and to support those communities.

“We’re in conversation both with the owners and with the trade unions to find a deal.”

Prime Minister Sir Keir Starmer took a similar line on Tuesday, telling senior MPs that he understood the importance of the plant.

The Unite union urged ministers to take British Steel into public control if a deal cannot be struck between its Chinese owners and the government to avoid the company folding and thousands of job losses.

General secretary Sharon Graham said: “Sustaining over 4,000 jobs across the UK and a further 20,000 in the supply chain, it would be an economic catastrophe if the worst were to happen and government was to allow British Steel to collapse.

“It is a national asset supporting UK plc that cannot simply be left to the market.”

Ms Graham said that, in discussions with her union, “the government has clearly moved and has made an offer to invest heavily in British Steel.”

She added: “This offer comes with long-term job guarantees — anything less would be a complete misuse of taxpayers’ money.

“British Steel now needs to make the necessary commitments.”

She also called on ministers to tackle structural weaknesses in the steel sector, including high energy costs, and urged the government to use public procurement to prioritise British-made steel in infrastructure projects.

A spokesperson for the Community union said: “Discussions between the government, Jingye and the unions are ongoing.

“In those talks, we have emphasised that all options must remain on the table, including nationalisation.”

Reform UK leader Nigel Farage, who toured the Scunthorpe site on Tuesday, pre-empted the government by publicly backing nationalisation.

He called for it to be announced “by the end of this week” because there are just three days to secure orders for raw materials to keep the furnaces burning.