Commons Sense

House of Commons · Westminster Hall

Steel Industry

16 October 2024 · 8 other contributors · 12,287 words

Opened by Richard Tice Reform Boston and Skegness

Responding minister: Sarah Jones

EconomyEnergyBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

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

Key points

  • Mr Tice expressed deep concern over the potential collapse of the UK steel industry within six to twelve months.
  • Mr Tice cited the closure of blast furnaces at Scunthorpe and noted that 71% of global steel is produced using blast furnaces.
  • The minister announced a new steel strategy with a 2.5 billion investment aimed at reversing recent industry decline due to under-investment and outdated infrastructure.

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.

Opened the debate

Richard Tice Reform Boston and Skegness

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.

Other contributors (8)
  • Alex Ballinger Lab Halesowen

    The west midlands region is the third largest for steel jobs, with 5,000 positions. Alex Ballinger supports the green transition but calls for a decision to safeguard the future of the sector.

  • Chris McDonald Lab Stockton North

    He criticized the previous Government's policies for denying private sector capital investment in the UK's steel industry, highlighting specific instances such as the closure of Redcar blast furnace and the lack of transition to new technology at Scunthorpe. He emphasized the need for a level playing field for investment in the steel industry to attract billions of pounds of private sector investment, and stressed that moving away from blast furnaces towards more efficient technologies is an economic imperative.

  • Greg Smith Con Mid Buckinghamshire

    Mr Smith expressed concern over the potential closure of Scunthorpe steelworks by Christmas and its impact on jobs, noting that Scunthorpe is the only site in the UK with the ability to produce virgin steel. He criticised the government for not supporting virgin steel manufacturing while new electric arc furnaces are being commissioned.

  • James McMurdock Ind South Basildon and East Thurrock

    Mr McMurdock highlighted a message he received, criticising the debate as 'talk is cheap'. He asked the Minister to include in her response steps that the Government will take to secure the future of the steel industry.

  • Jessica Morden Lab Newport East

    Jessica Morden acknowledges the strategic importance of steel and urges the Government to work with businesses, unions, and trade bodies for a fair transition. She highlights Wales's experience with job losses due to deindustrialisation and the need for competitive electricity prices. Ms Morden asked the Minister to take responsibility for the absence of an industrial strategy and steel-specific strategy during the previous 14 years, blaming Labour's repeated requests for a steel strategy that were ignored.

  • Jim Shannon DUP Strangford

    Mr Shannon highlighted the historical importance of steel production in the UK and noted the recent decline in steel production and demand, falling to historic lows in 2023. He mentioned the impact of the Northern Ireland protocol and the war in Ukraine on steel exports from Northern Ireland, as well as the closure of Tata's blast furnace 4 in Port Talbot leading to job losses. Shannon also raised concerns about the UK potentially relying too much on foreign imports for defence industry needs and emphasised the importance of sourcing steel locally for various industries including aerospace and defence. Will the Minister be generous and kind enough to let us know about the situation now and what she hopes progress will be over the next few weeks?

  • Lee Anderson Reform Ashfield

    Suggests banning steel from other countries if pursuing net zero increases costs, in response to Jessica Morden's speech.

  • Martin Vickers Con Brigg and Immingham

    Vickers expressed concerns about the future of the steel industry in Scunthorpe, highlighting the strategic importance of domestic steel production for defence and growth. He raised worries over rumours of imminent closures at blast furnaces and the importation of steel from abroad, stressing the need for transparency regarding the Government's intentions. Vickers called on the Minister to clarify whether the Government values the work of steelmakers in Scunthorpe and if they are committed to maintaining domestic steel production. The Minister and I share a desire to see a thriving steel industry. Can she give any sort of assurance that there will be no job losses at Scunthorpe until the strategy is produced?

Government Response

Sarah Jones

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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