Business secretary hints at workforce changes in Scunthorpe as ministers aim to preserve blast furnaces under new ownership

The UK government has not ruled out further job cuts at British Steel’s Scunthorpe site, despite mounting pressure from trade unions to halt redundancies initiated by its previous Chinese owners.

During a visit to Immingham docks on Tuesday, Business Secretary Jonathan Reynolds acknowledged that the steelworks may require a reshaped workforce structure following the government’s intervention. He indicated that future operations could demand a “different employment footprint” as part of a broader transformation of the site.

Reynolds’ comments came as he supervised the unloading of coal and iron ore destined for Scunthorpe’s blast furnaces. The government assumed control of the facility after discovering that former owner Jingye Group was attempting to offload supplies, potentially accelerating furnace shutdowns.

Addressing the future of British Steel, Reynolds said: “To secure the long-term viability of this plant, a private sector partner will be vital in supporting the government’s modernisation plans. That could involve new technologies or infrastructure, and with that comes changes to the scale of employment.”

He stressed the need to avoid a chaotic closure of the furnaces, highlighting the importance of strategic planning to protect jobs and ensure continuity. “These furnaces have served the country for nearly a century. What we’ve done is open the door to a more stable, planned future, and I’m confident that we’ve acted in the best interests of the workforce.”

The GMB union, however, has urged ministers to immediately scrap the existing redundancy scheme launched by Jingye. The plan could have led to both blast furnaces closing and around half of the site’s 3,500 workers losing their positions.

Charlotte Brumpton-Childs, national officer for GMB, said: “We expect the immediate threat of job losses to be removed. We’re keen to work with the secretary of state to shape a viable long-term future for steel production in Scunthorpe.”

Reynolds now faces the dual challenge of maintaining furnace operations in the short term while securing a private investor to fund a new electric furnace. This development is central to British Steel’s £1.25 billion decarbonisation strategy.

Although Reynolds had previously ruled out re-engaging with Chinese companies, on Tuesday he appeared to soften his stance. While criticising Jingye’s conduct, he stopped short of excluding future Chinese involvement altogether. “This was about a specific company that we felt acted against national interests. Each case must be judged individually,” he stated.

His remarks come as ministers work to manage the political fallout of British Steel’s ongoing crisis. Speculation over Jingye’s intentions—whether commercially motivated or deliberately harmful—has circulated in recent days. While Reynolds hinted at possible sabotage over the weekend, the government has since downplayed such concerns, stating that Jingye’s actions were likely business-driven.

Within Labour ranks, concerns over foreign control of vital infrastructure are growing. Liam Byrne, chair of the business select committee, remarked: “We must be extremely cautious about who is entrusted with the keys to our essential industries and national infrastructure.”