MPs will return to Westminster on Saturday to vote on emergency government plans to save British Steel which could see it brought into public ownership.

In a highly unusual move, parliament has been recalled from its Easter recess as Keir Starmer warned the company’s future was “in the balance” unless the government acts.

Ministers fear that the UK’s ability to produce its own steel will end forever if the loss-making plant at Scunthorpe is allowed to close down.

Negotiations between the government and British Steel’s Chinese owners Jingye on a rescue package broke down, forcing ministers to consider nationalisation.

The Steel Industry (Special Measures) Bill is expected to be passed by both the Commons and the Lords on Saturday.

It will give business secretary Jonathan Reynolds the power to direct the company’s board and workforce, while ensuring it is able to order the raw materials needed to keep the plant’s vital blast furnaces running.

Ministers also want to ensure the plant’s 3,500 employees are not made redundant.

In a Downing Street statement on Friday evening, Starmer said: “As prime minister, I will always act in the national interest to protect British jobs and British workers.

“This afternoon, the future of British steel hangs in the balance. Jobs, investment, growth – our economic and national security are all on the line.”

The PM added: “As I have said, we will keep all options on the table.

“Our future is in our hands. This government will not sit back and just hope. We will act to secure Britain’s future with British steel: made in Britain, in the national interest.”

Starmer also insisted that the plant’s cashflow problems are longstanding and not directly related to Donald Trump’s decision to impose 25% tariffs on all steel imports into the US.

A No.10 source said: “We’re in a new era and the quicker people stop clinging to the old ways the better.

“It’s not feasible to have critical infrastructure in the hands of companies that are willing to run them down.”

One steel industry insider told HuffPost UK it was “squeaky bum time” for the future of the plant, meaning the government had little option but to act.

But Tory leader Kemi Badenoch said Labour had “landed themselves in a steel crisis entirely of their own making”

She said: “The union-led Labour government have bungled the negotiations, insisting on a Scunthorpe-only deal that the company has deemed unviable.

“Keir Starmer should have seen this coming. But instead of addressing it earlier in the week when parliament was sitting, their incompetence has led to a last-minute recall of parliament.”