UK steel industry on brink of 'irreversible decline', MPs warn Rishi Sunak
Britain's steel industry risks plunging into “irreversible decline” unless the Tories intervene, MPs warned tonight.
A cross-party group has written to Rishi Sunak urging him to back moves to make the sector less polluting.
A dozen Labour, Conservative and Welsh and Scottish nationalist Independent MPs have signed the letter, seen exclusively by the Mirror, calling on the Prime Minister to act.
The letter warns the PM: “We are concerned that in the absence of government support the UK risks becoming the first G20 economy to see its domestic steel production go into irreversible decline.”
Describing steel as “a vital, strategic industry in the UK”, the MPs call on Mr Sunak to “act now to safeguard the future of the industry”.
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MPs have written to the Prime Minister highlighting the trouble the sector faces (AFP via Getty Images)The warning comes as 800 jobs hang in the balance at British Steel, and with 440 jobs under threat at Liberty Steel.
The MPs’ letter says: “Without a domestic steel sector competitively producing green steel, the UK will lose a vital pillar in its resilience to global supply chain shocks and security challenges.
“We need to invest in and transform this strategically important industry to ensure the UK is resilient in the face of such disruptive geo-political events.
“Without adequate support, we will inevitably offshore our emissions by importing steel from abroad without any of the benefits of domestic production.”
UK steel is blamed for 14% of the UK’s industrial emissions and 2.7% of all Britain’s greenhouse gases.
Hundreds of jobs are currently under threat in the industry (AFP via Getty Images)
The sector belches out pollution and is under pressure to decarbonise (Getty Images)Steel bosses have spent the past year pleading with ministers to help the transition to “green steel”, by switching to less-harmful production methods.
The MPs stress the sector “fundamentally underpins our entire manufacturing sector, being an essential material to the UK’s automotive, construction, engineering and packaging sectors.
“Furthermore, steel will be an integral part of the UK’s journey to reach net zero”.
They added: “There can be no transition to a low-carbon economy, supporting a range of industries from automotive to nuclear and renewables, without a thriving steel industry.
“Almost every aspect of the UK’s decarbonisation plan is steel intensive.”
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Labour MP Stephen Kinnock, whose Aberavon constituency includes Britain’s biggest steelworks, Tata at Port Talbot, said: “It is absolutely vital that we make our steel here in Britain.
MP Stephen Kinnock chairs the All Party Parliamentary Group on Steel (Richard Townshend Photography)“The British Government must match the ambition of our European competitors in the level of investment offered to domestic steel producers.”
Mr Kinnock, who chairs the All Party Parliamentary Group on Steel, added: “Every day of dither and delay is another day that our competitors gain an advantage as they forge ahead with the de-carbonisation of their steel companies and broader manufacturing industries.”
Britain’s £2.4billion steel industry directly employs 33,700 workers, with another 43,000 staff in supply chains.
The Mirror has been campaigning to Save Our Steel since the sector was hit by plant closures and thousands of job losses in 2015.
The Department for Business, Energy and Industrial Strategy was contacted for comment.
A Government spokesman said: “It is very disappointing to hear of potential redundancies at British Steel while negotiations on a very generous package of support from the Government are ongoing.
“We consider the success of the steel sector a priority and will continue to work intensively with the industry to help secure a decarbonised, sustainable and competitive future.
“This is on top of significant action already taken to protect the steel industry from unfair trade and energy costs including £800million in relief for electricity costs and access to support funds worth £1.5billion to cut emissions and become more energy efficient.”
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