Minister want at least half of all steel produced in the UK to be made in this country
The Government has announced measures to protect the UK steel industry that follows its moves to take control of production facilities in Scunthorpe and Rotherham.
Under its long-awaited steel strategy, Ministers have announced an ambition for up to 50% of steel used in the UK to be made in this country. The move, which increases the current target of 30%, will be coupled with reductions in steel import quotas as part of new trade measures to preserve steel production for critical national infrastructure and defence.
Ministers said this would ensure the UK steel sector’s future in the face of global overcapacity. The National Wealth Fund will be the main mechanism for providing up to £2.5bn of financing for investment in the steel sector this Parliament.
The Government last year took control of the British Steel plant at Scunthorpe and the Liberty facility in Rotherham as global challenges pushed both plants close to closure. A National Audit Office report earlier this week praised the speed of Government action in Scunthorpe but warned that there was a potential £1.5bn cost to the rescue.
Announcing the new strategy, Business and Trade Secretary Peter Kyle said: “Making steel in the UK is vital for national security, critical infrastructure and the wider economy. Steel-making is a cornerstone of our modern industrial policy that deliberately focuses support for key industries, technologies, and strategically important sectors.
“With this strategy we are closing the decades-long chapter of destructive de-industrialisation and committing instead to strengthening and sustaining Britain as a steel-making nation.”
The strategy confirms electric arc furnaces (EAF) as the future of British steelmaking, continuing the shift from blast furnaces to cleaner, EAF-based production using recycled scrap to support net zero. The shift has led to job losses in steel plants including Port Talbot.
The steel strategy has been welcomed by Community union general secretary Roy Rickhuss and Gareth Stace, director general of UK Steel. GMB national secretary Charlotte Brumpton-Childs also welcomed the plan but said “the devil will be in the detail and key questions around ownership of Scunthorpe and the future technology mix will be key to our members and their livelihoods.”
Rotherham MP Sarah Champion said: “The Labour Government has done more for steel in just two years than has been achieved in decades. Their commitment to our steel industry, including stepping in to protect steel assets facing closure in Rotherham, has come as a breath of fresh air.
“Our domestic steel industry is not a relic. It is world leading. It has been held back not by the quality of its products, but by a lack of vision in previous governments and a failure to provide the level playing field it needs in order to thrive. By taking long overdue trade measures to protect against cheap, subsidised foreign steel, I hope that much needed parity will finally become a reality.”
Welsh Secretary Jo Stevens said: “The UK Government is standing up for Welsh steelmaking and showing that we will do whatever it takes to boost domestic steel production and protect the thousands of steelmaking jobs in our communities. “Welsh steel is expected to account for half of future UK steelmaking. It is not only a vital part of the South Wales economy, but also a crucial part of the UK’s industrial strategy, infrastructure capabilities and national security.
“We said we would back our steelworkers and steel communities and we are delivering on that promise – Welsh steelmaking now has a secure and bright future.”
The strategy will be outlined on Parliament this afternoon.









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