British Steel hit with losses of 400m [Video]

Fears over the future of British Steel are mounting after the Chinese-owned company revealed that losses had spiralled to more than £400m, writes Jessica Clark.

In just the latest blow to the UK steel industry, the firm said losses rose eightfold in 2022, from £49.5m to £408.4m.

The figures came as the firm, Britain’s second biggest steelmaker, scrambles to secure a taxpayer-funded rescue deal.

Rival Tata Steel last week announced nearly 3,000 job losses, as the sector struggles to move to green steelmaking.

British Steel is seeking state funding to replace its blast furnaces at Scunthorpe with electric arc ones.

A similar deal between Labour and Tata Steel, which owns Britain’s largest steelworks at Port Talbot in South Wales, was signed last week.

The UK Government has agreed to pay £500m towards the electric arc furnace, with Tata Steel investing an additional £750m, in a push towards net zero carbon emission.

But the deal, first agreed by …