BRITAIN’S railways will continue to run on UK steel — thanks to a deal which secures thousands of blast furnace jobs.

Transport Secretary Heidi Alexander will today sign a £400million contract with British Steel.

The five-year agreement to supply 337,000 tons of track cements the firm as Network Rail’s main supplier.

This development offers crucial support to the Scunthorpe blast furnace plant, just two months after the government implemented urgent legislation to avert its shutdown.

It was triggered after Chinese owners Jingye Group looked to shut it despite a £500million government support offer.

According to Ms. Alexander, “This significant contract greatly enhances the prospects for British Steel and its committed team in Scunthorpe, further cementing its long-standing partnership with Network Rail to supply rails for Britain’s train networks.”

This move comes in response to criticism after Network Rail, responsible for maintaining Britain’s 10,000 miles of railway track and infrastructure, decided to issue a separate £140 million steel supply tender on the international market.

But officials insist British Steel will continue supplying more than 80 per cent of Britain’s rail needs, with only smaller contracts going to European firms for specialist components.

Clive Berrington, from Network Rail, said yesterday: “We are committed to buying British where it makes economic sense to do so and British Steel remains extremely competitive in the provision of rail and will remain our main supplier in the years ahead.

“Our European suppliers are an important part of our rail supply chain both for specialist items, and to ensure security of supply.”

The deal comes amid growing pressure on Labour in traditional steel towns.

Nigel Farage’s Reform UK has been stirring support with promises to “reindustrialise” Britain.