The Government is being urged to nationalise British Steel if a deal cannot be reached to avoid the firm collapsing into administration.

The Unite union said it would be an "economic catastrophe" if the company went out of business.

The Government has reassured MPs it will "leave no stone unturned" in supporting the UK steel industry.

Business Minister Andrew Stephenson told the Commons the Government would do everything it could, within its legal parameters, to support the industry.

"I can reassure the House that, subject to strict legal bounds, the Government will leave no stone unturned in its support for the steel industry," he said.

There are fears that British Steel could go into administration if it does not receive financial help from the Government to secure its future.

Almost 5,000 workers are employed by the company, mainly in Scunthorpe, with another 20,000 employed by firms in the supply chain. TSP Engineering, in Workington, is a wholly owned independent subsidiary of British Steel.

Unite assistant general secretary Steve Turner said: "While Unite is in continuing dialogue with British Steel and the UK Government, we are very clear that, if a deal cannot be struck to secure the long-term future of the steelmaker under private ownership, that the Government must bring it under public control in the national interest.

"British Steel's success is key to any future UK industrial strategy. It is a strategically important business which supplies other UK steelmakers with product and provides 95% of the UK's rail tracks.

"It would be an economic catastrophe if the worst were to happen and Government was to allow British Steel to collapse. It is a national asset supporting UK plc that cannot simply be left to the market."

The company has asked for a package of support to tackle Brexit-related issues.

Labour called on the Government to take a public stake in British Steel if necessary to protect jobs and support the UK's infrastructure and renewable energy systems.

Party leader Jeremy Corbyn said: "The collapse of British Steel would have a devastating impact on thousands of jobs, and could have major knock-on effects on wider supply chains.

"Once again, our communities are being betrayed by a Tory Government whose free market obsession is threatening Britain's vital manufacturing base - just as they were under Margaret Thatcher.

"Britain's proud steel industry has a major role to play in ushering in a Green Industrial Revolution, securing British manufacturing for a sustainable, green future. It needs support, not a death warrant.

"If an agreement cannot be struck with British Steel, the Government must act to take a public stake in the company to secure the long-term future of the steelworks and protect people's livelihoods and communities."

A British Steel spokesman said: "The British Steel Group has faced various trading challenges recently. In response to this, we have been working closely with our stakeholders to consider the different funding options available to the group.

"These negotiations have not concluded and we continue to work with all parties to achieve an outcome that secures the future success of British Steel.

"We are aware of speculation that the May salaries may not be paid. For the avoidance of doubt, we can confirm that funding is in place and British Steel employees will be paid their salaries in full.

"We do not want to provide any further comment on the live negotiations, other than to thank our entire team for their dedication and hard work during this challenging period."