British Steel considering 800 job cuts in Lincolnshire

British Steel is considering 800 job cuts centred on its Scunthorpe plant, the BBC understands.

The company has started to develop the plans, though the paperwork required before a consultation on redundancies has not yet been submitted.

It come as a representative of British Steel's Chinese owner Jingye described discussions over a £300m government support package as "unsatisfactory", according to a source.

British Steel declined to comment.

The company employs around 4,500 workers in the UK.

The BBC understands the plans include the possible closure of the coking ovens at the firm's Scunthorpe site, putting 300 jobs at risk.

Hundreds more posts would be reassessed, potentially resulting in around 800 job losses in total.

British Steel has been struggling with soaring energy prices, raising fears it will have to shut parts of its operations.

Last month the Chancellor was "poised" to approve the £300m support package for the struggling steelmaker to support decarbonisation efforts, contingent on job guarantees and investment from Jingye.

The proposal to cut 800 jobs at the company could potentially have put that government support package in question.

On Wednesday, a Jingye representative said discussions over the package for decarbonisation were "unsatisfactory" in a meeting with senior union officials, a source said.

According to the source, a representative of the company said, via a translator: "The money promised is for investment, which is the same money that was promised to steel producers a long time ago.

"The investment does nothing to address the obstacles currently causing high costs which are energy, carbon costs, labour and low domestic demand."

The representative also said: "High production costs are also meaning that British Steel is unable to be competitive in the international market."

The government said the steel industry played a "vital role" in the UK economy and said it was "committed to securing a sustainable and competitive future for the UK steel sector".

"The Business Secretary considers the success of the steel sector a priority and continues to work closely with industry to achieve this," a spokesperson added.

The Community Union, which represents steelworkers, expressed its concern at the planned cuts.

National officer Alun Davies said: "This move would represent a betrayal of [British Steel's] loyal workforce and their commitments to invest in the business.

"Steelworkers played their part to protect our steel industry and are being failed by both the government and British Steel who are abdicating their responsibilities to the workforce and our country."

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.

Making steel is very expensive, especially with energy prices at current levels.