The UK's largest bioethanol plant is set for closure with the loss of 160 jobs after the government confirmed it would not offer a bailout deal to the facility in Lincolnshire.

Owners Vivergo, a subsidiary of Associated British Foods, had warned that the plant would close without government support, and sources at the company have told Sky News the wind-down process is now likely to begin.

ABF, which also owns Primark, has not formally confirmed its closure plans and is yet to comment.

Vivergo have blamed the UK's trade deal with the United States, which ended a 19% tariff on imported ethanol, for making the plant unviable.

Ethanol tariffs were cut along with those on beef as part of the UK-US deal, which focused on reducing or removing Donald Trump's import taxes on UK cars and aerosp

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