Commons Sense

House of Commons · Ministers' Questions

Steel Industry

Thursday 18 May 2023 · 3 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Ministerial Department is engaging with the steel industry to secure a sustainable future.
  • British Industry Supercharger was announced to help reduce energy costs for industries like steel.
  • Government claims the support provided to the steel industry is continuous and not merely historic.

Topics (select to filter)

Questions & Answers

Q1 Holly Mumby-Croft
Business & Trade
Context

The MP is concerned about the challenges faced by the UK's steel industry, particularly regarding energy costs and decarbonisation.

Question

What steps her Department is taking to support the steel industry. The key issues facing the steel industry are energy prices—we are still paying much more than our European competitors—and decarbonisation. There are 23 clean steel projects in Europe but none here.

Answer from Kemi Badenoch

We are actively engaging with the steel industry to secure a positive and sustainable future. Alongside that, my Department announced the British Industry Supercharger in February—a decisive and necessary intervention that will help to reduce energy costs for energy intensive industries such as steel. The Government continue to provide significant financial support, and the steel industry has been able to bid into Government funds worth more than £1 billion to support energy efficiency and decarbonisation.

Partly answered

Not addressed: Specific timelines or concrete measures addressing immediate challenges were not detailed

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Q2 Jessica Morden Lab Newport East
Energy Business & Trade
Context

The MP criticises the Government's response to the challenges faced by the steel industry, particularly regarding energy costs and decarbonisation.

Question

As the Minister knows, the key issues facing the steel industry are energy prices—we are still paying much more than our European competitors—and decarbonisation. There are 23 clean steel projects in Europe but none here. In reply the Secretary of State will quote support that is historic, too little, or too late.

Answer from Kemi Badenoch

I visited the Port Talbot steelworks, and no one there is talking about Labour's plan; they are talking about what the Government have been doing, and they have been grateful for the support we have provided. It is misleading to call that “historic” when we have been showing continued support for the steel sector. The Government continue to provide significant financial support, and the steel industry has been able to bid into Government funds worth more than £1 billion to support energy efficiency and decarbonisation.

Not addressed: Labour's plan was criticised instead of addressing specific details about government support

How: Criticising Labour

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Q3 Holly Mumby-Croft
Energy Business & Trade
Context

The MP is concerned about the timing of support measures announced by the Government to assist the steel industry.

Question

I thank the Secretary of State for her visit to Scunthorpe steelworks. She knows well the challenges that the steel industry is facing. While the British Industry Supercharger was a welcome announcement that I hope will go a long way to putting us on a fairer footing, I am concerned that some of that support might not be fully in place until 2025.

Answer from Kemi Badenoch

I thank my hon. Friend for her question and for accompanying me on my visit to British Steel last week. We are moving quickly to deliver the supercharger policy. It will reduce energy costs to energy intensive industries, including steel, by around £20 per megawatt hour. She mentioned speed, and we will consult on the capacity market exemption shortly. We intend to bring forward secondary legislation on all three measures around renewable energy obligations and capacity market costs. I will do everything I can to ensure that businesses get the support they need as quickly as they can.

Partly answered

Not addressed: Specific timelines were not provided, only commitment to speed up processes

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