UK chancellor Jeremy Hunt is close to approving a £300m funding package for 'struggling' British Steel, according to a report by the BBC.

The move follows requests from Business Secretary Grant Shapps and Levelling-up Secretary Michael Gove.

Treasury sources said the money would have to be put towards decarbonization.

The Department for Business, Energy and Industrial Strategy (Beis), said the government ‘recognises the vital role that steel plays within the UK economy, supporting local jobs and economic growth’, and that it was ‘committed to securing a sustainable and competitive future for the UK steel sector’.

"While we cannot comment on ongoing negotiations, the Business Secretary considers the success of the steel sector a priority and continues to work closely with industry to achieve this."

Spokesperson for the UK government

"While we cannot comment on ongoing negotiations, the Business Secretary considers the success of the steel sector a priority and continues to work closely with industry to achieve this," a spokesperson said.

The support package, which was first reported by Sky, would help British Steel build electric arc furnaces in Scunthorpe, North Lincolnshire, which run on renewable power, and are best used with recycled steel.

Source: BBC