Minister of State, Deprtment for Business and Trade (): Steel is essential for a
modern economy, underpinning sectors from construction to
advanced manufacturing and driving growth. It plays a vital role
in the communities in which it is situated, supporting jobs and
living standards in the UK's industrial heartlands.
The Government is wasting no time in taking action to support the
industry. We have simplified public procurement and aligned it
with the Government's missions, to put UK firms – including the
steel industry - in the best possible position to compete for and
win public contracts. That is on top of delivering a better deal
for Port Talbot within weeks of taking office, to transform
production there and deliver a modern Electric Arc Furnace and
implementing the British Industry Supercharger to cut electricity
costs for steel firms, bringing prices more in line with
international competitors.
We are committed to rebuilding the UK steel sector and securing
the future of the industry, and that is why in Spring 2025, we
will publish the steel strategy – The Plan for Steel. The Plan
for Steel will establish a clear and ambitious long-term vision
for the steel industry and set out the actions needed to get
there. It will articulate what is needed to create a competitive
business environment in the UK with the aim of attracting new
private investment to expand UK steelmaking capability. Our
planning reforms will give the industry a strong pipeline of
business that will secure supply chains for years to come and
drive economic growth as part of our Plan for Change. This will
be backed by up to £2.5bn which will be available through the
National Wealth Fund and other routes.
This could benefit regions across the UK – like Scunthorpe,
Rotherham, Redcar, Yorkshire, and Port Talbot – which have a
strong history of steel production. It will be spent on
initiatives that will give the industry a long future – such as
supporting the transition to electric arc furnaces, or other
improvements in UK capabilities. The strategy will be pursued in
alignment with wider government priorities including the trade
strategy, strategic defence review and Invest 2035, the upcoming
industrial strategy.
On Sunday 16 February 2024, we published a consultation document
which sets out our planned approach for the strategy and asks
stakeholders for their feedback and evidence on a range of
topics, both on the wider direction that the UK steel sector
should take, and the detail of the proposed areas of focus for
the strategy. This is an important step in developing the
strategy for the longer-term. This includes issues we know to be
concerns for the industry, such as the price of electricity and
the challenging global trading environment, but also areas of new
opportunity, such as how to best leverage the UK's abundant
supplies of scrap steel and how we can best align our production
capabilities with domestic demand. The document also seeks views
on funding and financing, which will help inform how to best take
forward our commitment of up to £2.5bn for the sector . This
information will be reviewed as we develop the strategy and will
be reflected in the final document when it is launched in spring
2025.
This is just one element of our open and collaborative approach
to this work, which had a strong start at the beginning of this
year with the first meeting of the Steel Council under this
Government. The intention is that the Steel Council, a body of
industry experts and representatives, will meet again before the
publication of the strategy. I have also had the opportunity to
speak to the industry directly, and will continue to do so, by
chairing a series of roundtables addressing specific issues where
detailed industry feedback will be vital to inform our approach.
We believe this is important and timely work. This government
stands by the UK steel sector, as it continues to work on finding
solutions to those challenges. As the Secretary of State for
Business and Trade has set out in the consultation document, the
steel industry has an enormous role to play in our mission to
drive economic growth, and it is of the utmost important that the
steel strategy is a real driver of meaningful change in the
industry. The publication of this consultation, and the insight
we hope to receive from stakeholders, is an important step in
achieving that.
Responses to the consultation can be provided by online survey
until 30th March.
