MP backs proposed £120m handout to British Steel buyers

An MP has backed Government plans for a £120m funding package to help secure the Chinese takeover of British Steel.

The Business Secretary Andrea Leadsom met with executives from the proposed buyers Jingye this week to discuss offering Regional Growth Funding.

Andrew Percy, the MP for Brigg and Goole, welcomed the news: "That £100m of pounds is going into the site at Scunthorpe to secure jobs and to secure the facility here. So its not going off to China.

"In fact its going to be the reverse. The company have promised 1.2 billion of investment into the site so its going to be UK taxpayers money supporting more money coming from China."

British steel employs around 4,000 people in Scunthorpe, with another 20,000 people working in the supply industries.

The steel firm went into liquidation in May. It is claimed that it is costing a million pounds a day to keep the plant running.

The Scunthorpe plant employs 4,000 people Credit: Press Association

Talks with the government's preferred bidder Ataer stalled before Jingye came in.

The Chinese company says it will invest over a billion pounds in the Scunthorpe steel plant if the takeover goes through.

The Brigg and Goole MP added: "I've spoken to members of the Jingye group. They seem really committed.

"It the Conservative government that has been paying the wages of these workers and we are going to leave no stone unturned and do everything that is legally possible to safeguard the future of the steelworks."