The Government has set a two-week deadline to save 25,000 jobs threatened by the collapse of British Steel ­before it pulls the plug for good.

Ministers have agreed to keep the beleaguered steelmaker on life support after its failure last week, while a desperate search is conducted for a new owner willing to put up hundreds of millions of pounds needed to ensure its survival.

However, the state is refusing to shoulder the burden for any longer than 14 days. If a serious buyer isn’t found during that time frame, then the indemnity it is providing will be removed. Running the giant blast furnace and mills at British Steel’s Scunthorpe plant is estimated to cost several million pounds a day.

“There’s no money to support it – it’s a case of weeks, not months,” said one Government source, of the business that employs 4,500 and supports a further 20,000 jobs.

“There’s a fear that if it goes on any longer without a credible buyer emerging then government will be seen to have done what Jeremy Corbyn wants and have nationalised steel,” said an ­industry source. It is understood the Official Receiver has received more than 150 expressions of interest in British Steel’s assets, though many are not being taken seriously. The preferred outcome is a sale of all the assets to one party, rather than piecemeal sell-offs, but all options are being explored.