Scunthorpe steelmaking has a bright future – Reeves

The chancellor expressed confidence in the future of Scunthorpe's steelworks on a visit to the town

Chancellor Rachel Reeves predicted a "bright future" for steelmaking in Scunthorpe when she visited the town on Thursday.

She made the comments after a week that saw MPs pass an emergency law to take control of British Steel from its Chinese owners Jingye.

The Scunthorpe plant had faced imminent closure after orders of raw materials to keep its blast furnaces running had not been made.

Reeves said: "We will now work to get to the next stage and secure steelmaking here in Scunthorpe for decades to come."

After the emergency bill became law last Saturday, the government stepped in and placed new orders for iron pellets and coking coal to keep the furnaces going.

Reeves said it was "absolutely vital" that virgin steel continued to be made in the UK for economic and national security, and "Scunthorpe is the only place in the UK that can do that".

The chancellor added that despite poor management of the business over the past few years, the government was determined to make sure "there is a bright future" in Scunthorpe.

"In time, we want to move to an electric arc furnace... Scunthorpe's future is secure for many decades," she added.

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