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.

It also throws a lifeline to the Scunthorpe blast furnace plant — just two months after ministers rushed through emergency laws to save it from closure.

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

Ms Alexander said: “This landmark contract truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe, building on its decades-long partnership with Network Rail to produce rail for Britain’s railways.”

It also follows a backlash after Network Rail, which looks after Britain’s 10,000 miles of railway track and infrastructure, was caught putting a separate £140million steel order out to global tender.

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.