PM says he wants 'thriving' steel industry but swerves guaranteeing its survival

23 March 2023 , 10:49

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Fears are growing over the future of the British steel industry (Image: Courtesy of British Steel)

Rishi Sunak has insisted he wants a “thriving” UK steel industry amid growing fears of hundreds of job losses.

The Prime Minister moved to ease mounting concerns about the sector’s future as major companies plan cuts and issue increasingly desperate pleas for help in switching to environmentally-friendly production.

British Steel is planning to axe 260 posts and 440 roles are under threat at Liberty Steel.

The Prime Minister admitted: “I know this must be a concerning time for British Steel employees, and we stand ready to work ... to support them.”

Insisting he wanted a “thriving steel industry in our United Kingdom”, he added: “The Government’s recently-announced British industry supercharger fund can help boost competitiveness in the UK’s key energy-intensive industries.”

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Rishi Sunak speaks during the weekly session of Prime Minister's Questions (PRU/AFP via Getty Images)

Ministers say that under the plan, 300 businesses “will benefit from targeted measures to ensure the energy costs for key UK industries are in line with other major economies around the world”.

However, Mr Sunak had been asked by Holly Mumby-Croft - the Conservative MP for Scunthorpe, where British Steel is based - to “reassure my constituents in north Lincolnshire that we will never see the end of UK steelmaking under his watch”.

Mr Sunak failed to give her that promise.

Worries are growing among steel chiefs as they call for Government help in moving to less-polluting production.

Steel is blamed for 14% of the UK’s industrial emissions (WalesOnline/Rob Browne)

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.

The industry employs 34,500 people directly and supports a further 43,000 in supply chains.

The PM’s spokesman said this week: “We have supported the UK steel sector over a number of years.

British Steel's operation at Scunthorpe

“It’s an important industry, not least for defence.

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“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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Ben Glaze