Whitehall sources say Starmer and Reeves aligned in seeing steel as of ‘huge strategic importance’

Keir Starmer and Rachel Reeves are actively considering nationalising British Steel in an escalation of plans first revealed in the Guardian last year.

The prime minister said all options were on the table to secure the future of the Scunthorpe plant, which is owned by the Chinese firm Jingye and employs about 3,500 people.

Defended the welfare cuts as being based on “dignity” and criticised the Office for Budget Responsibility for not taking into account possible behavioural changes of people affected by the cuts when assessing the consequences of the policy.

Said threats from foreign powers targeting people in the UK were “growing” and the issue was constantly being raised in international talks. He added: “I think we generally underestimate that threat, and it’s very important we’re alive to it.”

Stepped up his criticism of regulators, telling MPs he was “astonished” by how many there were and saying he was “frustrated” by the barriers they put up.

Called for an inquiry into the killing of 15 aid workers in Gaza and said international law “underpins everything we do bilaterally and multilaterally” when questioned about the conflict in the Middle East.

Said he would speak to the intelligence agencies and the Kyiv government after Volodymyr Zelenskyy, the Ukraine president, said two Chinese citizens had been captured fighting as part of the Russian army.

Said changes to the social care system could come as soon as next year amid a review led by Lady Louise Casey.