UK Steel Manufacturing

In a debate in the House of Commons, the Minister for Industry, Sarah Jones, outlined the government's position on the future of steel manufacturing in the UK. She stated that the previous Conservative government had allowed the steel industry to decline, with over a decade of crises and no clear plan to safeguard the industry's future. In contrast, the current government is determined to change this, committing £2.5 billion to rebuild the steel industry, in addition to £500 million for Tata Steel. The government aims to improve the business environment for the sector, including reducing energy bills and enabling more green UK-made steel to be used in infrastructure projects. The shadow minister, Greg Smith, responded by criticizing the government's plans, arguing that Labour's drive for green steel will mean fewer jobs, not more. He claimed that the government has allowed rumours and speculation about the future of British Steel to run rife, while thousands of workers question whether they will have jobs by Christmas. Smith pressed the minister on several issues, including whether British Steel has indicated it will halt coking coal imports, the government's commitment to electric arc furnaces in Scunthorpe, and discussions with stakeholders regarding the impact on other steelworks. The debate that followed covered a range of topics. Several members raised concerns about the anxiety and uncertainty felt by steel workers and their communities, particularly in Scunthorpe and Port Talbot. The minister acknowledged these concerns and stated that the government is in regular discussions with trade unions, British Steel, and local communities to address the issues. The importance of maintaining primary steel production capacity in the UK was a key point of discussion, with the minister stating that the government is exploring options such as direct reduced iron production to ensure the country retains the ability to produce virgin steel. The need for an industrial strategy, grid capacity and connections, and the impact of decarbonisation on the industry were also debated, with the minister outlining the government's plans to support the sector's transition to greener production methods without causing de-industrialisation.