British Steel has rejected a £500 million aid offer from the UK government and has formally launched a consultation process to close two blast furnaces and reduce steel rolling mill capacity at its Scunthorpe plant.

The company said that due to the impact of tariff measures, rising environmental costs brought about by high-carbon steel production and rising energy prices, market consumption power has been greatly impacted, causing the steel mill to lose about £700,000 a day. 

The continued losses made it difficult for the blast furnace and steelmaking businesses to operate, so the decision was made to consult with employees and unions to discuss the specific arrangements of the closure plan. 

There are three proposed options for the closure of the blast furnaces: by early June 2025, in September 2025, or after September 2025. There is no clear schedule yet.