The planned redundancy consultation at British Steel, threatening the jobs of 2,700 workers at its Scunthorpe site, has been halted following a significant intervention by the UK government. Just two hours ago, company officials announced they would withdraw the paperwork submitted to the Department for Business and Trade in March – paperwork originally outlining potential workforce reductions initiated under the previous management team. This decision comes after a crucial shift in the company’s operational stability: a secure supply of raw materials has been established for both the Queen Anne and Queen Bess blast furnaces, guaranteeing continuous production.
Lisa Coulson, interim chief commercial officer at British Steel, expressed relief and gratitude, stating that “it had been a difficult and worrying time for staff and their families.” She highlighted the extraordinary dedication of the workforce, emphasizing their role in securing the future of steelmaking in Scunthorpe. The government’s involvement has provided much-needed certainty, with Industry Minister Sarah Jones welcoming the news as bringing “certainty for thousands of hard-working staff for the long term”.
The company is also discontinuing a costly and temporary process known as the ‘salamander tap.’ This involved drilling holes into blast furnaces to remove residual hot metal – a measure previously deemed necessary due to fluctuating production levels. Ms. Coulson confirmed that intensive efforts have been made to stabilize operations, enabling continuous operation of both key furnaces. The strategic acquisition of raw materials represents a pivotal moment for the steelworks, allowing it to remain operational and maintain employment.
The news has been met with widespread relief by unions like the GMB Union, represented by Charlotte Brumpton-Childs, who described the cancellation as “fantastic news for steelworkers and the people of Scunthorpe.” She noted that the situation had felt “like a cloud had been lifted” from the community. The government’s intervention underscores its commitment to supporting key industries and safeguarding jobs within the UK’s manufacturing sector. Further investigation into why the government took control of British Steel is ongoing.
