Parliament will be recalled this weekend to debate draft legislation giving the Government power to takeover the running of British Steel's Scunthorpe plant.

Both the Commons and the Lords will return for the rare Saturday sitting to debate a law which Downing Street says give it "the power to direct steel companies in England". It comes amid negotiations with British Steel's Chinese owner Jingye, which has proposed closing the plant's two blast furnaces - a move which could spell the end of virgin steelmaking capabilities in the º£½ÇÊÓÆµ.

Saturday's sitting of Parliament will be the first time since 1982, when MPs returned after the Falklands War began. Unions, which have been calling for nationalisation of British Steel, reacted warmly to the news.

A Number 10 spokesperson said: “The Prime Minister has been clear, his Government will always act in the national interest. All actions we take are in the name of British industry, British jobs and for British workers. Tomorrow Parliament will be recalled to debate the Steel Industry (Special Measures) Bill. The Bill provides the government with the power to direct steel companies in England, which we will use to protect the Scunthorpe site.

“It enables the º£½ÇÊÓÆµ Government to preserve capability and ensure public safety. It also ensures all options remain viable for the future of the plant and the livelihoods it supports. We have been negotiating with British Steel’s owners in good faith ever since coming to office. We have always been clear there is a bright future for steel in the º£½ÇÊÓÆµ. All options remain on the table."

Charlotte Brumpton-Childs, GMB union national officer, said: “GMB has long called for nationalisation as the only way to save the º£½ÇÊÓÆµ steel industry. Tomorrow looks like the first step in that process.

"The Business Secretary must be given huge praise for acting decisively to safeguard this vital industry and the thousands of jobs that rely on it."

Roy Rickhuss, general secretary of steelworkers’ union Community, said: “We welcome this decision to recall Parliament. It is in the national interest that a solution is found to secure a future for British Steel as a vital strategic business. We can’t allow Britain to become the only G7 country without primary steelmaking capacity.

"In the absence of a deal with Jingye to continue blast furnace operations at Scunthorpe as part of a transition to greener steelmaking, it is essential that we see urgent action taken to bring British Steel into public ownership."