12 March 2023 , 16:24
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The Tories are “sleepwalking into the death” of Britain’s steel industry, a union chief warned tonight.
Fresh fears have been raised about the future of the sector after a major report found the UK “falling further behind in the race to develop green steel plants”.
Shadow Chancellor Rachel Reeves pledged to spend £28billion a year funding an overhaul of industry to help the UK meet net-zero pledges.
She said unless action was taken, “we're going to be importing steel, because we failed to turn our steel industry to green steel”.
An Energy and Climate Intelligence Unit study has revealed Britain has just one planned “green steel” project, compared with 38 in the EU.
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The steel sector is blamed for contributing to Britain's carbon emissions (WalesOnline/Rob Browne)Ten plants on the Continent already produce green steel.
ECIU energy analyst Jess Ralston warned: “With car manufacturers starting to seek out sources of green steel to back their EV (electric vehicle) expansions, will the UK be in a position to compete?”
Steel is blamed for 14% of the UK’s industrial emissions and 2.7% of all Britain’s greenhouse gases.
Ministers and industry chiefs have been locked in negotiations about government funding to help the sector switch to more environmentally-friendly production.
Chancellor Jeremy Hunt is under mounting pressure to throw the industry a lifeline when he delivers his Budget on Wednesday.
Meanwhile, firms are cutting jobs, with British Steel planning to axe 260 posts and 440 roles under threat at Liberty Steel.
GMB national officer Charlotte Brumpton-Childs said: “Whilst our European counterparts are steaming ahead with innovation, investment and futureproofing their steel industries, the UK is once again scrabbling around to keep the lights in our own forges.
GMB union national officer Charlotte Brumpton-Childs"The unique challenges for UK steel include energy prices more than double those in Germany, a lack of incentive to use domestic steel for infrastructure products and no strategy to deal with the US's Inflation Reduction Act.
"Amidst this, the UK Government has been sleepwalking into the death of a vital industry.
"We need a cohesive industry that champions the UK manufacturing sector, including steel.
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"Failing to invest in the innovation and greening of the UK steel industry is a sure-fire way to fail to protect it.
"Steel needs government intervention now, yet ministers appear hellbent on sitting on their hands."
UK Steel director-general Gareth Stace said: “The UK steel industry has a clear plan of how it can decarbonise and transition to net-zero steelmaking.
UK Steel director-general Gareth Stace (Edward Moss Photography)“Other governments around the world are entering into partnerships with their steel industries and investing billions into new plants.
“The UK Government must follow suit or risk missing its net-zero target and the economic benefits of a decarbonised steel industry.
“The steel industry cannot do this alone and needs a competitive business landscape to bring the investment to the UK.”
Labour MP Stephen Kinnock, whose Aberavon constituency includes Tata’s Port Talbot steelworks, said: “Whilst European steel industries are racing towards the future thanks to the support of their forward-looking governments, the British steel industry is still stuck in the starting blocks due to British ministers refusing to provide the policy support and investment that’s required.”
Labour MP Stephen Kinnock (WalesOnline/Rob Browne)Mr Kinnock, who chairs the All Party Parliamentary Group on Steel, added: “Our steelworkers make the best steel that money can buy and they stand ready to go on this exciting journey to cleaner, greener production methods, but they are being badly let down by a government that appears to be ideologically opposed to working in partnership with industry.”
A Government spokesman said: "We are providing extensive support to our vital steel industry, helping with energy costs, ensuring fair public procurement and protecting the sector from unfair trade.
"Our reform of trade remedies this week was welcomed by the entire industry, including UK Steel, who called them 'hugely significant'.
"This is further proof that we are listening to what the UK steel industry needs to maintain stability and support jobs across the country.”
The Mirror has been campaigning to Save Our Steel since 2015.