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Steel Industry

16 October 2024

Lead MP

Richard Tice
Boston and Skegness
Reform

Responding Minister

Sarah Jones

Tags

Economy
Word Count: 12287
Other Contributors: 8

At a Glance

Richard Tice raised concerns about steel industry in Westminster Hall. A government minister responded.

Key Requests to Government:

Mr Tice urged the government to take immediate action by implementing a five-point plan: taking a strategic stake in British Steel to ensure blast furnaces do not close, scrapping carbon taxes and potential border adjustments for imports, imposing tariffs on cheap steel imports, buying British-made materials, and reconsidering net zero targets.

How the Debate Unfolded

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

Lead Contributor

Boston and Skegness
Opened the debate
Mr Tice expressed deep concern over the potential collapse of the steel industry in the UK within six to twelve months, emphasizing that it could lead to a complete loss of general steel-making capacity. He cited specific instances such as the closure of blast furnaces at Scunthorpe and highlighted that 71% of global steel is made using blast furnaces, while electric arc furnaces might not be viable due to high electricity prices in the UK. Mr Tice also underscored the strategic importance of steel for national security, economic growth through multiplier effects, and the devastating impact on communities reliant on these industries.

Government Response

Sarah Jones
Government Response
The Government are committed to investing £2.5 billion in a new steel strategy next spring, aiming to turn around the decline witnessed over recent years due to under-investment and outdated infrastructure. They will review technologies for primary steel production, including direct reduced iron, while discussing challenges such as Chinese overcapacity, high energy costs, and decarbonisation pressures. The minister emphasised collaboration with the sector and unions and addressed specific concerns about job security at plants like Scunthorpe and Harland and Wolff, highlighting ongoing efforts to secure a positive future for British steel.
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.