British Steel has entered insolvency putting 5,000 jobs at risk and threatening countless more in the supply chain across the country.

The Government's Official Receiver has taken control of the company as part of a compulsory liquidation process.

The search for a buyer has begun and it will continue to operate in the immediate future with no job losses straight away.

The Official Receiver has reported that British Steel Ltd had been wound up in the High Court but that staff would continue to be paid and employed.

Accountancy firm EY have been appointed to the role of Special Manager to assist the Receiver.

British Steel was purchased by private equity firm Greybull Capital for £1 during a steel crisis in 2016.

And while the company employs thousands of staff across sites in Scunthorpe and Teeside, the Federation of Small Business was warned that countless others will be affected.

Mike Cherry, national chairman of the FSB, said: "This is a hugely unsettling time for the British Steel workforce, who will be devastated by this announcement.

"The news is also extremely worrying for the large network of small businesses involved in the company's supply chain, who will now be very concerned about the future.

"The closure will have a huge knock on impact across the communities surrounding the company's plants.

"A raft of small firms like caterers, cafes, cleaners, shops and visitor attractions, all of which employs their own staff, rely heavily on British Steel.

"Businesses throughout the supply chain will need guidance and support as the situation develops."

Punchline says, the collapse of British Steel is of huge concern to our country and everything must be done to save a vital industry.

If we were to lose our steel-making capabilities, we would never be able to recover them and would be left beholden to other countries around the world, affecting our national security.

China is producing record amounts of steel - more than has ever been made on these shores - and stockpiling at record levels as well, our country cannot and must not be held to ransom by them.