UK Steel welcomes British government’s Plan for Steel consultation

The UK Government has launched a consultation on its Plan for Steel, a move aimed at addressing key challenges in the industry, including high electricity costs, international trade competition, and the need for enhanced domestic scrap steel recycling. The announcement was welcomed by UK Steel, the trade association representing the sector.

Business Secretary Jonathan Reynolds outlined the government’s commitment to supporting the steel industry, highlighting a planned £2.5 billion investment through the National Wealth Fund. This funding is intended to modernise steel production in key regions such as Scunthorpe, Rotherham, Redcar, Wales, and parts of Yorkshire and Scotland, helping to secure the future of the UK’s steel industry and ensure its global competitiveness.

UK Steel stated that this consultation is an opportunity to shape the future of the industry by engaging investors, businesses, experts, workers, and local communities. The association emphasised that a well-structured strategy could revitalise the sector and contribute significantly to the broader UK economy.

The consultation comes at a time of heightened trade tensions, with US tariffs on UK steel exports posing a fresh challenge. Business Secretary Jonathan Reynolds recently expressed concern over potential tariffs, stating that they would be “negative” for both the UK and the US. He noted that the UK’s steel exports include highly specialised products, such as materials used in US Navy submarine casings, and that the two nations have a mutual interest in negotiating an exemption. However, former US President Donald Trump has indicated that the tariffs would be imposed “without exceptions or exemptions.”

UK Steel has previously warned that these tariffs could be a “devastating blow” to the sector, potentially impacting the £400 million in annual UK-US steel trade. There are also concerns that restrictions on UK exports to the US could lead to an influx of cheaper steel into the UK market, further pressuring domestic producers.

The government’s Plan for Steel consultation will explore ways to enhance steel production, encourage the use of UK-made steel in public projects, and improve scrap processing facilities. It will also assess how to make UK steel more globally competitive by addressing high electricity costs.

UK Steel has committed to working closely with the government and industry stakeholders to ensure the strategy delivers meaningful reforms. The association believes that with the right policies in place, the UK steel industry can become greener, stronger, and more competitive on a global scale.

Source: UK Steel, Photo: Fotolia