Government officials will this week fly to China in an effort to convince the owner of British Steel to finalise plans for a state funding package amid hundreds of job cuts at the company.

Sky News has learnt that civil servants from the Department for Business and Trade are travelling to meet executives from Jingye Group amid protracted talks about a £300m grant to the Scunthorpe-based company.

Sources said the talks were expected to focus on the value of an energy subsidy package, which could take the overall value of government support for British Steel to approximately £1bn.

It comes just days after Kemi Badenoch, the new business and trade secretary, told Sky News’ economics and data editor, Ed Conway, that “nothing is ever a given” when asked whether Britain needed a steel industry.

A government spokesperson said: “The government recognises the vital role that steel plays within the UK economy, supporting local jobs and economic growth and is committed to securing a decarbonised, sustainable and competitive future for the UK steel sector.