Jingye Group rejects £500 million aid for British Steel

Jingye Group, the Chinese owner of British Steel, has rejected a £500 million government aid offer. This decision raises concerns about the future of thousands of jobs in the UK steel industry. The offer was part of efforts to support the transition to greener steel production. The business secretary, Jonathan Reynolds, presented the offer in a letter earlier this week. Reports suggest Jingye had been seeking up to £1 billion, highlighting a significant gap between their request and the government's proposal. British Steel employs around 3,500 people across various sites, including Scunthorpe. The government hopes to sustain operations at British Steel while discussions continue. Industry officials have warned that without funding, Jingye may find its operations unsustainable and consider closing blast furnaces. This situation is critical, as US tariffs could further threaten the steel sector's viability. Union leaders have urged the government to classify steel as critical national infrastructure. They argue that protecting the steel industry is essential for the economy and jobs. The government has also committed up to £2.5 billion for the steel sector as part of ongoing consultations.