Labour tonight piled pressure on the Tories to throw the steel industry a lifeline.
Two of the country’s biggest firms have highlighted risks to their futures in recent weeks - and sector insiders believe the industry is approaching a crunch point.
They have highlighted sky-high energy costs which they say are hammering production.
Experts have told the Mirror that without extra help, plants may scale back operations, including with temporary shutdowns.
Shadow Business Minister Bill Esterson wrote to Business Secretary Grant Shapps today urging him to act.
In the letter, seen by the Mirror, Mr Esterson warns that “job cuts would be devastating”.
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“The closure of steelmaking operations would result in mass redundancies and diminish our sovereign capabilities,” he says.
“Without government intervention, jobs’ losses and employment support will have significant costs to the economy and to the taxpayer.
“The loss of a strategic foundation industry will hurt the wider economy.”
In a stark warning of the threat to Britain’s steel sector, Tata Steel announced in August that Port Talbot, the country’s biggest steelworks which employs 4,000 people, could close without subsidies for reducing carbon emissions.
Last month, British Steel’s Chinese owner Jingye reportedly signalled its two blast furnaces at Scunthorpe, Lincs, will not be commercially viable without hundreds of millions of pounds of taxpayers’ cash.
Mr Esterson believes the “next few months will be crucial for our steel industry”.
Community steelworkers’ union operations director Alasdair McDiarmid said: “Our steel industry is under huge pressure and steelworkers need government to back us.
“With the right framework of support Britain’s steel industry can have a bright future, but the fact is no European steelmaker can decarbonise without a comprehensive partnership with government.
“The Government needs to get their act together, and it would be unforgivable if steel jobs and communities became casualties of recent turmoil in the Tory Party.
“Britain needs its steel industry for a prosperous and green economy and for our national security.
“The Government must back our steel industry now or risk losing it forever.”
A British Steel spokesman said: “We’re continuing formal talks with the UK Government to help us overcome the global challenges we currently face.
“The Government understands the significant impact the economic slowdown, rising inflation and exceptionally high energy and carbon prices are having on businesses like ours and we look forward to working together to build a sustainable future.”
Tata Steel declined to comment, though it is understood its talks with the Government about decarbonising are ongoing.
The Department for Business, Energy and Industrial Strategy was contacted for comment.
Some 34,500 workers are directly employed by UK steel companies, along with another 43,000 staff in supply chains. The industry is worth £2.4billion.
The Mirror has been campaigning to Save Our Steel since 2015.
