UNION leaders in Britain are braced for an announcement of thousands of job losses at British Steel because the business is being hit by the strength of sterling.

The private steel company said yesterday that it planned to accelerate an efficiency drive "as a matter or urgency" which was bound to hit jobs and could lead to sweeping changes in, working practices.

British Steel employs 43,000 workers in Britain at plants including Port Talbot and Llanwern in South Wales, Teesside and Scunthorpe and any cutback is likely to affect managers as well as production workers.