The Government was accused of failing Britain’s crisis-hit steel industry on Tuesday, as fears grew for the more than 2,000 jobs at one of the UK’s biggest steel plants.

The future of the Redcar site on Teesside has been thrown into doubt after its Thai owners reportedly missed a series of debt repayments and unions have demanded urgent talks with management to clarify the situation.

Steel makers have been left reeling by soaring costs and falling demand and critics say ministers have not done enough to back the whole sector.

The strength of the pound has dented exports, just as the country is flooded with cheap steel from China.

Labour MP for Redcar, Anna Turley, demanded Government action. She said: “Steel is important to our region and the UK economy as a whole and should be a key part of the Northern Powerhouse project.

“We need the Government to commit to playing its part in safeguarding the industry’s future.”

Business Minister Anna Soubry insisted the Government was trying to help.

She told the Commons: “We know the steel industry is facing very, very difficult times. I think it would be fair to say that these are the most difficult times it’s ever faced in this country.

“So we’re looking at all the things that Government can do to continue to assist the steel industry.”

The Redcar plant, which dates back 160 years, has lurched from one crisis to another in recent years.

It was mothballed by previous owner, Tata Steel, in 2010 and faced the threat of closure the following year.

Sahaviriya Steel Industries (SSI) came to the rescue and is believed to have spent around £1billion getting it up and running.

But the plant has racked-up big losses amid a flood of cheap steel imports from China.

SSI is understood to have held an urgent board meeting on Tuesday.

There has been mounting concern about the site in recent months. Chief operating officer Cornelius Louwrens said a few weeks ago: “You cannot make this size of losses continuously, without, at some point, saying this cannot work any longer.”

Matters appear to come ahead when the company failed to repay loans worth £80million in June and was given a short-term stay of execution by lenders.

Closure of the plant would be a big blow to the local region, where unemployment is already high. Around 1,000 contractors in the area would also be affected.

SSI refused to comment on the plant’s future yesterday (Tues).

A spokesperson for steel trade union Community, which represents the majority of the workforce and contractors on site, said: “We are fully aware of the difficult market conditions in which SSI UK is operating and the worries and concerns of workers.

“While we appreciate the incredibly difficult market conditions faced by all UK steel producers, we believe that a lack of support from the UK government in vital areas such as energy, environmental and business taxes and procurement threaten the very future of the UK steel industry.”

Dave Hulse, GMB national officer, said: “This SSI plant is in a very precarious position as managers are awaiting a main board decision on its future.

“This is a very difficult time for thousands of Teesside workers and their families.”