Business Secretary Kemi Badenoch fuels fears about collapse of steel industry

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Kemi Badenoch was promoted to Business Secretary in this week
Kemi Badenoch was promoted to Business Secretary in this week's reshuffle (Image: Zuma Press/PA Images)

New Business Secretary Kemi Badenoch has fuelled fears about the collapse of the steel industry, claiming “nothing is ever a given” when asked about its survival.

Some sector insiders believe the Government is determined to “manage decline” of the once-thriving industry amid sky-high energy costs and moves to slash pollution.

Asked by Sky News whether the UK always needed a steel industry, she said: "Nothing is ever a given."

She claimed she needed to "sit down and look at what exactly has been going on with steel from a business perspective and an industry perspective".

Shadow Business Secretary Jonathan Reynolds hit back: “Comments like this show how out of touch and lacking in ambition the Conservatives are for British industry.

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“Steel is integral to the net-zero transition, our national security and manufacturing base as well as being the bedrock of many communities across the UK.

Business Secretary Kemi Badenoch fuels fears about collapse of steel industryThe Mirror has been campaigning to Save Our Steel since 2015 (Getty Images/iStockphoto)

“Labour will partner with the steel industry to deliver green steel and keep jobs in the UK for decades to come.”

The Mirror has been campaigning to Save Our Steel since 2015.

Community steelworkers’ union general secretary Roy Rickhuss said: “Minister Badenoch may wish to forget the past but steelworkers remember well the promises that were made to them by Conservative prime ministers that leaving the EU will lead to stronger support for our steel industry on issues like energy costs and procurement.

“The Minister should take note of the repeated commitments her Government colleagues made to the industry from the dispatch box.

“Our ability to produce steel here in the UK is absolutely critical for our sovereign capabilities and economic growth, but this vital industry is now at risk because of Government negligence.

“Losing our proud steel industry and the tens of thousands of jobs it provides only to rely on cheap imports from countries that don’t play by our rules like China and Turkey will be nothing short of betrayal.”

Labour MP Stephen Kinnock, whose Aberavon constituency includes Britain’s biggest steelworks, Tata at Port Talbot, said: " Kemi Badenoch is a Brexit supporter, but she clearly doesn’t believe in strengthening Britain's ability to stand on its own two feet, given that failing to support Britain's steel industry would be a hammer blow to our sovereign capability.

"Her words are also a kick in the teeth for firms determined to transition to green steel, and for the tens of thousands of steelworkers, their families and communities who are reliant on these well-paid meaningful jobs.

"She should withdraw this comment and apologise to the steelworkers who rightly expect the Business Secretary to be fighting their corner, rather than actively undermining their proud commitment to this critically important foundation industry.”

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Mr Kinnock, who chairs the All Party Parliamentary Group on Steel, added: "Our national security and economic resilience depend on us having a strong and healthy British steel industry.

“In this turbulent world, we cannot rely on importing steel from countries that do not have Britain's best interests at heart.”

UK Steel director-general Gareth Stace said: "We look forward to working with the Business and Trade Secretary of State on the strategic nature of the UK steel industry and its importance to national economic resilience and meeting net-zero ambitions."

Responding to Ms Badenoch’s comments, the PM’s spokesman said: “As you've seen from her full quote, she made clear that we recognise the importance that steel plays in the economy.

“She wants to look at it both from the International Trade perspective, which she has done before, and look at what's going on domestically.”

He said the Government is “committed” to the future of the steel industry and understands it “supports local jobs and economic growth”.

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Sophie Huskisson

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