UK no longer able to make own steel from scratch — with last two blast furnaces set to shut

The UK will no longer be able to make its own steel from scratch — with its last two blast furnaces set to be shut.

British Steel’s Chinese owner Jingye yesterday announced plans to close its Scunthorpe site, in a move that puts 2,700 jobs at risk.

British Steel said it had been losing around £700,000 a day, with operations “no longer financially sustainable”; due to market conditions, environmental costs and new US steel tariffs.

The plant’s closure would be devastating for locals in Scunthorpe. It comes three months after Tata Steel shut its last blast furnace, which cut 2,500 Port Talbot jobs.

The situation is embarrassing for the Government, which has put UK steel at the heart of its infrastructure growth plans, including commitments for a third runway at Heathrow.

Industry body UK Steel said the move “would mean we have a major gap in capacity to meet the future demand of the nation”;.

Jingye, which saved British Steel from bankruptcy in 2020, has been working on plans to convert its energy-intensive blast furnaces into electric arc furnaces, but told MPs two weeks ago that the project would cost £2billion.

It had already invested £1.2billion, but the project was said to be non-viable without Government help.

On Tuesday night, Jingye rejected a reported £500million lifeline package.

There are still industry hopes that a deal can be brokered but the Government has been at pains to say it has no plans to renationalise British Steel.

Industry Minister Sarah Jones said “all options”; were being looked at, though continuing the talks was preferred.

Business Secretary Jonathan Reynolds said: “We will work tirelessly to reach an agreement with the company’s owners to secure its future and protect taxpayers’ money.”;

The Unite union blasted British Steel for “holding the Government to ransom”;.

Wolfson: reforms risky

The boss of Next has warned the Government to be careful its controversial worker reforms don’t create a “huge risk to employment”;.

Lord Wolfson said the devil was in the detail on Labour’s Make Work Pay plan, particularly as changes to zero-hours contracts could affect shifts for seasonal workers and students and “cause havoc”;.

He said: “It could mean it’s impossible to give someone extra hours without a full contract, depriving a lot of people the ability to earn extra money in the run-up to Christmas.”;

Next does not offer zero-hours contracts itself. Lord Wolfson had urged the Government to stagger the sharp rise in National Insurance contributions but said he was at least encouraged that the Spring Statement had not introduced fresh taxes.

He also warned: “Policymakers should not allow themselves to believe that burdening ‘big’ business does not impact the lives of millions of ‘ordinary’ people: it does — consumers through higher prices, workers through fewer jobs, and savers through lower pension income.”;

Next became the fourth British retailer to post £1billion of profits after a 10 per cent rise in the past year. It joins Marks & Spencer, Tesco and B&Q owner Kingfisher which saw fortunes collapse almost right after passing the milestone.

Lord Wolfson admitted: “You can never feel confident in retail.”;

But the chain plans new UK stores and has hiked its sales guidance for the half-year after strong trading.

No room for tax on visits

The boss of Travelodge has hit out against proposals for a “tourist tax”; — saying they will hinder economic growth.

Jo Boydell, CEO of the budget hotel chain, said plans for cities in England to copy Wales and Scotland in introducing visitor levies would add significant complexity for businesses and result in higher prices for consumers.

Her comments came as the firm, which runs more than 600 sites across the UK, Ireland, and Spain, saw revenues remaining above £1billion last year.

Pop star Taylor Swift’s Eras tour was one of the events that helped reservations stack up.

Travelodge says it already has “strong advance bookings”; for Oasis, Beyoncé, and Black Sabbath gig dates this year.

But the chain is facing £21million of extra labour costs this year from hikes to National Insurance contributions and the minimum wage.

H&M on a go-slow

Fashion giant H&M has suffered weaker-than-expected sales during a discounts drive.

The group, which also owns & Other Stories and COS, posted a 3 per cent rise in sales to £4.2billion for the first quarter. It expects sales this month to be slower at just 1 per cent due to heavy discounting.

New boss Daniel Ervér plans celebrity campaigns and has signed singers FKA Twigs and Tyla after a successful tie-up with Charli XCX last year.

Sky chatbot bid

Sky is cutting 2,000 jobs in its call centres and replacing some workers with chatbots.

The broadcaster, owned by US media giant Comcast, plans to shut three of its ten UK call centres, in Stockport, Sheffield and Leeds.

Some roles will also be affected at call centre sites in Dunfermline and Newcastle.

Sky said it was investing in technology to make its service “seamless, reliable and available 24/7”; with the changes creating “a faster, smarter and more responsive experience”; for customers.

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THE boss of Durex and Dettol maker Reckitt could bag up to £16.7million if he hits targets this year.

Kris Licht, the firm’s chief executive, was awarded a total £5.8million package last year, while finance chief Shannon Eisenhardt received a total £3million.

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Bosses fearful

Businesses are bracing for a tougher next three months, with activity expected to decline, the CBI has said.

Its latest Growth Indicator recorded a balance of -18 per cent, led by companies in the services sector.

Manufacturers anticipate a flat output, but their forecasts are worsening, according to the index.

The CBI highlighted the upcoming rise in staffing costs, concern over the employment rights bill and uncertainty over tariffs as causes for the loss of confidence.