Unions call for £200m support to keep last blast furnaces open

British Steel should get an extra £200m from the government to help it keep the UK's two remaining blast furnaces open until electric replacements are built, according to a union proposal.

- Jasper Jolly

Chinese-owned British Steel has said it will replace its polluting blast furnaces at Scunthorpe with electric arc furnaces, which can be used to make much cleaner, recycled steel.

However, unions fear a rapid closure of the blast furnaces will cost up to 1,900 jobs within months. The loss of almost half of Scunthorpe's 4,000 jobs could cause "severe socioeconomic consequences" for Lincolnshire, according to a report, seen by the Guardian, from Syndex, a consultancy commissioned by the Community, GMB and Unite unions.

The British steel industry must switch away from coal-driven blast furnaces to meet net zero carbon targets. The switch has already cost 2,500 jobs at Port Talbot, south Wales, where Indian-owned Tata Steel shut down its blast furnaces in September.

British Steel has faced financial struggles that led it to the brink of closure before Christmas. Ministers have considered nationalising the company if it would save jobs.