Commons Sense

House of Commons · Ministerial Statement

UK Steel Manufacturing

05 September 2024 · 18 other contributors

Opened by Sarah Jones Lab Croydon West

EconomyEnergyBusiness & Trade

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Sarah Jones raised concerns about uk steel manufacturing in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • Government received a dysfunctional steel sector from the previous administration
  • New government committed to reversing the trend with 2.5 billion in funding
  • Investment aims to secure jobs and boost economic growth through public-private partnerships

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Sarah Jones

The Government received a dysfunctional steel sector from the previous administration, marked by recurring crises and an unclear plan for its future. The new government is committed to reversing this trend with £2.5 billion in funding alongside the previously announced £500 million for Tata Steel. This investment aims to secure jobs and boost economic growth through public-private partnerships, reduce energy costs for steel producers, and increase the use of UK-made green steel in infrastructure projects. The minister emphasised the need for decarbonisation without de-industrialisation and highlighted ongoing discussions with key industry players regarding Port Talbot’s transformation and similar talks with British Steel.

Other contributors (18)
  • Martin Vickers Con Brigg and Immingham

    Question

    The hon. Gentleman inquired about media reports suggesting British Steel might stop importing coke from October, which could lead to production halting by Christmas and layoffs for workers at Scunthorpe. He expressed concern over the impact on local businesses and supply chains, noting unions' assurances that blast furnace operations would continue during the electric arc furnace construction process.

    Minister reply

    The minister acknowledged the concerns raised but defended her government's approach to steel industry reform. She highlighted previous Conservative spending mismanagement, stressing the current investment is genuine money from national wealth funds. The minister also reassured the MP that discussions with unions and British Steel are ongoing and committed to securing primary steelmaking in the UK through a £2.5 billion investment.

  • Greg Smith Con Mid Buckinghamshire

    Question

    Questions about British Steel’s importation of coking coal, future plans for electric arc furnaces in Scunthorpe, discussions with Chinese imports suppliers and stakeholders such as Ben Houchen and the Welsh Government.

    Minister reply

    The Minister responded by stating that her government understands the importance of steel to national security and economic growth. She committed £2.5 billion from the national wealth fund and a strategy to enable industry growth, while acknowledging ongoing negotiations with British Steel.

  • Liam Byrne Lab Birmingham Hodge Hill and Solihull North

    Question

    Asked whether it is the policy of this Government to seek to ensure that this country carries on with its ability to make virgin steel.

    Minister reply

    The Minister confirmed the importance of a successful steel industry for national security and green economy, stating that £2.5 billion fund has been established to support direct reduced iron production.

  • Sarah Olney Lib Dem Richmond Park

    Question

    Inquired about the timeline for the new industrial strategy and whether it will be placed on a statutory footing.

    Minister reply

    The Minister confirmed that the Industrial Strategy Council would be put on a statutory footing, emphasising the importance of an industrial decarbonisation strategy that protects jobs and industries.

  • Bill Esterson Lab Sefton Central

    Question

    Asked about grid capacity and connections for electric arc furnace production in Port Talbot.

    Minister reply

    The Minister acknowledged the importance of grid connections, stating that her government is prioritising this issue to ensure rapid development.

  • Gavin Williamson Con Stone, Great Wyrley and Penkridge

    Question

    Asked about reversing a Labour policy banning coking coal imports.

    Minister reply

    The Minister committed to further discussions with the opposition regarding how to retain virgin steel production while adhering to climate commitments.

  • Torsten Bell Lab Swansea West

    Question

    Asked for reassurance that the Welsh Government and local councils will be closely involved in future plans.

    Minister reply

    The Minister assured ongoing collaboration with the Welsh Government and local leaders, promising to meet any additional local figures suggested by Torsten Bell.

  • Sammy Wilson DUP East Antrim

    Question

    The Minister promises an industrial strategy, but can she assure us that there will be provision for steel to have a supply of coking coal produced in this country and that damaging and expensive decarbonisation requirements will not further detriment the steel industry?

    Minister reply

    I thank the right hon. Gentleman for his question. Of course, if we do not take measures to decarbonise and tackle the climate crisis, the costs to this country will be infinitely higher... We are supporting the industry to do the opposite of what happened under the previous Government, which is grow.

  • Sarah Champion Lab Rotherham

    Question

    Will the Minister commit to addressing the underlying issues, to making sure all Government procurement goes to British steel-makers, and to addressing the punitive business rates and high energy costs that are hampering our development?

    Minister reply

    I thank my hon. Friend for making those important points... We need to bring down those energy costs... We will look at our supply chains and all the levers of Government to see what we can do proactively.

  • Nick Timothy Con West Suffolk

    Question

    Do the Government consider the manufacture of primary steel to be a strategic domestic industry that must be protected, yes or no?

    Minister reply

    Well, the previous Government did not. We have a £2.5 billion fund and, as I said, we are looking at DRI to make virgin iron... We will come back to the House as soon as we have something to announce.

  • Derek Twigg Lab Widnes and Halewood

    Question

    It is very important that we have a regular and guaranteed supply of steel, and we want to see more UK steel used in defence manufacturing.

    Minister reply

    I completely agree with my hon. Friend... The Department is working closely with the Ministry of Defence and the Secretary of State for Defence to make sure we are maintaining our defence... We are building as much as we can in the UK.

  • Richard Tice Reform Boston and Skegness

    Question

    The obsession with net zero is killing our steel industry and steel jobs, and leading to our inability to produce primary steel.

    Minister reply

    The hon. Gentleman talks about our obsession with decarbonisation... We will use the money we are investing through the national wealth fund to develop a steel strategy that will enable us to bring new entrants into the UK.

  • Matt Western Lab Warwick and Leamington

    Question

    Everyone agrees that steel is a crucial strategic foundational industry for this country, but it suffers from very narrow margins... Does the Minister agree that underlines the importance of why this country urgently needs an energy strategy?

    Minister reply

    My hon. Friend is absolutely right... This Government have been unbelievably proactive...

  • Richard Holden Con Basildon and Billericay

    Question

    At the third time of asking, will she commit to what the Secretary of State committed to before the general election?

    Minister reply

    I welcome the right hon. Member for Croydon South to his place... We are dealing with the consequences of that... We will be putting a £2.5 billion investment into steel.

  • Chris McDonald Lab Stockton North

    Question

    The global steel industry is investing many billions of pounds in new green technology... Does my hon. Friend agree that our plan for steel will allow us to attract that private sector investment here?

    Minister reply

    My hon. Friend, who is an expert in this area and with whom I have talked many times, will know that I agree with him.

  • Jim Shannon DUP Strangford

    Question

    What financial aid is available to other companies to help to meet their environmental goals when they are facing costs like never before and there is pressure on the industry?

    Minister reply

    I thank the hon. Member for that question... We need to be technology agnostic and look at what the new industries, the new developments and the new research are telling us.

  • Joe Morris Lab Hexham

    Question

    The previous Government’s plan for steel was to pay half a billion pounds to Tata Steel to not make any steel for years, while placing thousands of highly paid and highly skilled workers at risk of redundancy with no guarantee of jobs in the future. Can the Minister reassure me that she is taking steps to secure the future of our strategic industries?

    Minister reply

    I thank my hon. Friend for that question. Steel is an incredibly important strategic industry for the UK and it will be saved under this Government from the decline that we saw under the previous Government. The £2.5 billion that we are investing alongside the £500 million for Port Talbot will ensure that our industry thrives. We are working closely with industry, the unions and local communities, and we will work with our regional metro mayors and others, to make sure that we have the right industries in the right places and that we see success where previously we have seen decline.

Shadow Comment

Martin Vickers

The opposition focuses on the immediate concerns of steel workers, particularly at Scunthorpe works. There are widespread media reports suggesting that coke imports will stop in October, potentially halting production by Christmas and leading to layoffs. This uncertainty is causing significant anxiety among workers and supply chain employees. The shadow minister expresses concern about Britain becoming more reliant on global markets if Scunthorpe’s furnaces close, stating it would be devastating for the community and workforce.

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