Government announces multibillion-pound plans to boost UK steel industry
The government has announced multibillion-pound plans to boost the UK steel industry and help secure its future.
A consultation was launched aimed at looking at long-term issues facing the sector such as high electricity costs, unfair trading practices, and scrap metal recycling.
In the face of US President Donald Trump’s plans for tariffs on products including steel, the government said up to £2.5bn will be put towards supporting the UK steel industry.
Help will be available through the National Wealth Fund which ministers said could benefit regions including Scunthorpe, Rotherham, Redcar, Yorkshire and Scotland.
Funds will be spent on initiatives aimed at giving steel a long future such as electric arc furnaces.
The announcement follows the government’s go ahead for expansion at Heathrow Airport which will require 400,000 tonnes of steel.
The industry has faced a number of challenges in recent years, including a switch to a greener method of production at the huge plant in Port Talbot, South Wales, with the loss of jobs.
Business Secretary Jonathan Reynolds said: “The UK steel industry has a long-term future under this Government. We said that during the election, and we are delivering on it now.
“The deal announced by Heathrow announced this week will secure a strong industry pipeline for years to come – and we are putting the full weight of Whitehall behind the industry to build on this success.
“Britain is open for business, and this government has committed up to £2.5 billion to the future of steel to protect our industrial heartlands, maintain jobs, and drive growth as part of our Plan for Change.”
Gareth Stace, director general of UK Steel, said: “Developing the Steel Strategy must be a collaborative process, and the consultation is an open invitation for all stakeholders to help shape the future of UK steel.
“The government’s commitment to our steel sector is both vital and welcome. A robust, bold, and ambitious Steel Strategy has the power to reverse the sector’s decline, particularly as we face increasing competition from imports benefiting from more favourable business conditions.
“By setting out a clear business plan and roadmap for investment, the government can secure a brighter future for our industry, safeguard jobs, and support steelworkers and their families.”
Unions welcomed today’s announcement.
Community general secretary Roy Rickhuss said: “After a long era of neglect under the previous government, we welcome the government’s firm commitment to our steel industry.
“The new green paper sets out some of the main challenges and opportunities our steel sector will face over the years ahead, posing important questions on how we can secure and boost existing capacity, stimulate demand for UK steel, and deal with longstanding problems like industrial energy prices.”
Andy Prendergast, GMB national secretary, said: “After years of dithering, today’s plan provides desperately needed funding for our once proud, now beleaguered steel industry.
“As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security.”
Unite general secretary Sharon Graham said: “The launching of the steel strategy is a critical landmark for a foundation industry, whose success is essential to the wellbeing of our economy and our national security.
“It is the first time in decades that a government has made a positive commitment to invest in the UK steel industry.
“It is essential that all such investment is clearly linked to rock solid job guarantees.”
By Alan Jones, PA Industrial Correspondent