Jeremy Hunt, the chancellor, is close to agreeing to a £300m funding package for Britain's second-biggest steel producer in a move which could avert the loss of thousands of jobs, Sky News learns.
A decision to grant it will not be without controversy, given British Steel's Chinese ownership and doubts about its adherence to financial commitments made when it bought the business out of insolvency proceedings in 2020.
"Given the magnitude of the liabilities due to fall on HMG in the event of blast furnace closure, and following the PM's steer, we would like officials to test whether net Government support in the region of £300m for British Steel could prevent closure, protect jobs and create a cleaner viable long-term future for steel production in the United Kingdom.
British Steel employs about 4,000 people, with thousands more jobs in its supply chain dependent upon the company. Mr Shapps' predecessor, Jacob Rees-Mogg - who lasted just weeks as business secretary under Liz Truss - opened formal talks with Jingye in October about the provision of government funding to help British Steel decarbonise.
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