On Air Now

Paddy @ Breakfast

6:00am - 10:00am

  • 01723 336444

Now Playing

Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers' determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

Money blog: €1 home goes on sale - but there are T&Cs

Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April - a move triggered by the Chinese group's preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain's centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant's transition to greener steelmaking, but was offered just half that sum by ministers.

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel's equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week's meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump's trade war.

Sky News's economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Read more from Sky News:
Is Britain going bankrupt?
Public finances in 'relatively vulnerable position', OBR warns

Jingye declined to comment, while a spokesman for the Department for Business and Trade said: "We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel's long-term future requires private sector investment.

"We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site."

Sky News

(c) Sky News 2025: Jingye and Whitehall officials hold talks over British Steel future

Did you find this article useful?

This is the Coast is committed to providing a daily local news service for the Yorkshire Coast. We are a small locally owned and operated business which employs professional journalists and reporters. We do not receive any public funding or grants and we are entirely funded by our local commercial operations. We enjoy fabulous support from local businesses who work with us on their advertising and marketing campaigns, but the cost of providing high quality, well researched, fact checked local news coverage is significant.

If you appreciate what This is the Coast does, and would like to help support our journalism, please consider supporting us on a monthly basis today.

A small contribution from all our readers would really help support independent journalism for the Yorkshire Coast.

More from Video

Follow Us

Get Our Apps

Our Apps are now available for iOS, Android and Smart Speakers.

  • Available on the App Store
  • Available on Google Play
  • Just ask Amazon Alexa
  • Available on Roku

Today's Weather

  • Scarborough

    Sunny intervals

    High: 21°C | Low: 16°C

  • Filey

    Sunny intervals

    High: 22°C | Low: 15°C

  • Whitby

    Sunny intervals

    High: 23°C | Low: 15°C

  • Bridlington

    Sunny intervals

    High: 21°C | Low: 14°C

  • Hornsea

    Sunny

    High: 20°C | Low: 15°C

  • Driffield

    Sunny intervals

    High: 25°C | Low: 15°C

News