20 March 2023 , 15:33
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Rishi Sunak was today issued another stark warning about the decline of Britain’s steel industry.
Unite union leader Sharon Graham urged the Prime Minister to take “urgent action to protect the UK’s sovereign steelmaking capability”.
She told him: “It is your Government’s policy to grow foundation industries like steel, make them more internationally competitive and secure more jobs in them throughout the UK.
“But there is no sign that this is actually happening.
“The UK steel industry is shrinking, becoming less competitive and losing skilled jobs.
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“This is a threat to thousands of workers and their families across Wales, the Midlands, the North East and beyond.
“It is a threat to the very heart of the communities that surround them, and it is a threat to the future of our national security and our broader manufacturing and construction industries.”
Unite union general secretary Sharon Graham (Coventry Live/Tristan Potter)The British steel industry is worth £2.4billion annually to the UK economy.
It employs 34,500 people directly and supports a further 43,000 in supply chains.
But firms are cutting jobs, with British Steel planning to axe 260 posts and 440 roles under threat at Liberty Steel.
Steel is blamed for 14% of the UK’s industrial emissions and 2.7% of all Britain’s greenhouse gases, as the Government races towards making Britain net-zero by 2050.
Ministers and industry chiefs have been locked in negotiations about government funding to help the sector switch to more environmentally-friendly production.
But Chancellor Jeremy Hunt failed to mention steel in last week’s Budget.
Chancellor Jeremy Hunt (Anadolu Agency via Getty Images)Ms Graham said: “Steel is a foundation industry essential for the success of the UK economy.
“Despite this, due to years of inaction and an abdication of leadership, this essential industry is being left to wither and decline.
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“The Government must stop prevaricating and immediately bring in the necessary support and reforms needed to promote and boost our steel industry.”
She said to “maintain UK steel production in future there needs to be proper support to transition from coke furnaces to new technologies using electricity or hydrogen”.
The switch will require billions of pounds of investment, with industry chiefs saying the time it takes to build new production methods, such as electric arc furnaces, means the situation is increasingly urgent.
The industry wants help to cut emissions (WalesOnline/Rob Browne)Shadow Business Secretary Jonathan Reynolds said: “Steel is at the heart of communities across the UK, it is essential to achieving our net-zero commitments and crucial to our national security.
“A Labour Government would buy, make and sell more in Britain and review the pipeline of all major infrastructure projects.
“Labour will increase standards in public procurement contracts which would increase the amount of British products used, including British steel.
“Labour understands the vital role steel plays in our economy and that’s why we will partner with industry and workers to deliver the clean steel Britain needs, securing good jobs for generations to come.”
Shadow Business Secretary Jonathan Reynolds (Richard Rayner)The PM’s spokesman said: “We have supported the UK steel sector over a number of years.
“It’s an important industry, not least for defence.
“There is ongoing work to look at how we can support them, but I’m not going to pre-empt that.”
The Mirror has been campaigning to Save Our Steel since 2015.
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