UK considers £300m rescue funding for British Steel

Chancellor Jeremy Hunt is considering a £300m funding package for struggling British Steel, according to reports.

The move would secure thousands of jobs and make the firm's steelmaking more sustainable, Sky News reported.

British Steel's Chinese owner Jingye would need to agree to invest at least £1bn into the business by 2030, it said.

The £300m would be given in instalments over the next few years, the PA news agency said.

Sky said the funding would help British Steel replace blast furnaces in Scunthorpe, North Lincolnshire, with electric alternatives.

These electric arc furnaces can run on renewable power, and are best used with recycled steel.

Three years ago British Steel was bought out of insolvency by Jingye, which became its third owner in four years.

But the Chinese steel-making giant has recently been pushing for UK taxpayer funding, which it says it needs to keep the firm running.