British Steel has collapsed into compulsory liquidation, throwing into jeopardy the jobs of almost 4,500 direct employees and 20,000 positions in the company’s supply chain.

The state-backed Official Receiver has stepped in to take control of the business after talks with the Government about a £30m cash injection failed and directors petitioned the High Court to wind up the business.

The country’s second-largest steel maker buckled after the pressure on its balance sheet caused by a slowdown in orders and rising raw material costs related to Brexit and the weakened pound became overwhelming. British Steel's private equity owner Greybull blamed "Brexit-related issues" for making the turnaround of the industrial giant "insurmountable".

Business Secretary Greg Clark revealed that potential buyers of British Steel "have already made contact".

“The Government has worked tirelessly with British Steel, its owner, and lenders to explore all potential options to secure a solution for British Steel," he said.

“The Government can only act within the law, which requires any financial support to a steel company to be on a commercial basis. I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made.”

Mr Clark called it a “deeply worrying time” for the company's employees and local communities.