Treasury ‘considering plans to inject £300m into struggling British Steel’

The firm’s Chinese owner would have to invest another £1 billion by 2030 under the deal, according to a source.

British Steel will be required to buy new furnaces for its Scunthorpe plant under the deal. (Danny Lawson/PA) (PA Archive)

The Government is considering a plan to funnel nearly a third of a billion pounds towards British Steel to save the struggling metal maker from collapse.

A Treasury source told the PA news agency that Chancellor Jeremy Hunt is thinking about handing the company £300 million in instalments over the next few years, if it meets certain conditions.

The investment, first reported by Sky News, could help protect jobs at the company, which employs about 4,000 people directly.