UK Steel Industry

Opened the debate

Jessica Morden, as co-chair of the all-party parliamentary group on steel and metal-related industries, discussed the importance of the UK steel sector. She paid tribute to the dedicated workforce in the industry, highlighted the well-paid and highly skilled jobs it provides, and noted its role in critical supply chains across various sectors like automotive construction, power generation, and defence. Morden expressed concern over challenges faced by companies such as Tata Steel and called for government support.

Government Response

Nadhim Zahawi congratulated Jessica Morden on her passionate advocacy for the UK steel industry and acknowledged its critical role in the country's economic recovery. He highlighted the acquisition of British Steel by Jingye, a £1.2 billion investment that represents confidence in the UK steel sector. The Minister noted challenges faced by the industry prior to the pandemic and ongoing issues due to reduced demand from the coronavirus. The Government have supported the industry through various schemes like the job retention scheme, which protected 9.6 million jobs across the country. Bespoke support was provided for companies of strategic importance, securing over 1,000 jobs at Celsa Steel in south Wales. Zahawi committed to working closely with representatives and unions to address long-term challenges, focusing on energy costs, procurement, innovation, and international trade. The Government have invested £480 million in compensation to the steel sector for competitive energy costs and £315 million in the energy transformation fund. A clean steel fund of £250 million will support low-carbon technologies and processes. Data on public sector steel procurement has been published to help UK producers compete for contracts. The Minister emphasised ongoing efforts with international partners through G20 forums to address global overcapacity issues and unfair trading practices.