Keir Starmer's plan to save British steel industry as thousands of jobs at risk
Keir Starmer today outlined his plan to save Britain’s steel industry.
Speaking to the Mirror after visiting the UK’s biggest steelworks, the Labour leader vowed to prevent the demise of the sector, which is threatened with up to 5,000 fresh job cuts. He declared: “We don’t want to abandon steel, we want to ensure British steel is there into the long-term future of the country.”
Mr Starmer wants to “drive down energy costs” hammering manufacturers, while also “driving up steel production” so firms make equipment for the power industry rather than it being imported from abroad. Boosting energy generation in the UK is key to slashing prices and increasing demand for British-made steel, he said.
“If we go for clean power 2030, that will require infrastructure, offshore wind turbines (and) all the other infrastructure that goes with renewables,” he said. “That will drive up the need for steel.”
The party chief and First Minister of Wales Mark Drakeford toured the vast site (PA)Mr Starmer visited Tata’s plant at Port Talbot, South Wales, where up to 3,000 workers face losing their jobs thanks to a deal struck last month between the company and the Tories. The Government will pump £500million of taxpayers’ cash into the factory to switch from coal-fired blast furnaces to less polluting electric arc furnaces, which require less manpower.
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Another 2,000 jobs are under threat at Scunthorpe-based British Steel as it tries to slash emissions. The £2.9billion industry directly employs 39,800 workers, with another 50,000 in supply chains.
Mr Starmer admitted he was “concerned” about the potential for further deindustrialisation in steelmaking heartlands like South Wales and the North East. “I don’t think this Government has a plan for steel, it’s the usual short term sticking plasters,” he warned. “We know there is an election next year and I hope that if we are privileged enough to come into power and to serve, that we are able to pick this up and ensure that we do have a future for British steel.
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“It’s totemic, it’s a foundational industry; it’s not just history - if you look at the demand for steel it’s going up. We just need to make sure that we are in a position to service that demand in this country, because other countries - Sweden, France, etc - are already getting into this space. We need to not only be in the race for the next generation of steel production, we need to be ahead in the race, which I genuinely believe we can be if you have an active, mission-driven, Labour Government working in partnership with the sector according to a strategy.”
A transition board to manage the switch, at Port Talbot, including softening the blow of job cuts, met for the first time last week. Unions fear a Labour Government could arrive too late to prevent irreversible damage to the industry.
“I hope that’s not the case and the more confidence we can give to the sector about our plans the better,’ said Mr Starmer, following talks with union leaders and Tata Steel’s chief executive TV Narendran, who jetted in from Mumbai. “We want clean steel technology. Obviously that includes the electric arc furnaces but also hydrogen technology (and) carbon capture.
“Nobody stands in the way of evolution - everybody recognises that we need to transition to clean steel technologies. The question that we were discussing - and I have confidence in Labour’s plan - is how we get from where we are now to that future with a bridge that not only protects the jobs that are in existence now, and the skills that go with it, but also draws in the new jobs of the future.”
Community steelworkers’ union general secretary Roy Rickhuss said: "It's great that Keir has come to Port Talbot today to show his support for our members and to reaffirm Labour's commitment to our steel industry. Labour's plan for an ambitious decarbonisation strategy for the sector - and a just transition to green steel for the workforce - has Community's full support. It is clear that Labour is on the side of steelworkers, and we need a Keir Starmer-led Labour Government that will deliver the investment needed for our industry to thrive.”
UK Steel director-general Gareth Stace said: “We welcome Labour’s continued commitment to the future of our steel industry. Steel is a strategically vital core product that no developed economy can be without. The UK is the only G20 country where steel production has sharply declined over the last decade relative to the size of our economy and manufacturing base – we are a real outlier. For our steel sector to not only survive but actually thrive and deliver a massive boost to net-zero Britain, we need a strong, long-term partnership between government and industry.”
A Tata Steel UK spokesman said: “Our proposals would secure the long-term future for steel making in Port Talbot, bolster UK steel security, and help develop a green industrial ecosystem in South Wales. We are committed to meaningful consultation with our trade union partners and will work closely with the UK and Welsh governments through a dedicated transition board to support affected workers and their communities.”
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A Conservative spokesman said: “The Government will continue to work to secure a sustainable and competitive future for the UK steel industry that also gets best value for money for UK taxpayers.”
The Mirror has been campaigning to Save Our Steel since 2015.
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