At the recent "Shaping the Steel Strategy" parliamentary summit, Secretary of State for Business, Jonathan Reynolds MP, delivered a rousing keynote address outlining the UK government’s vision for revitalizing the steel industry.
Hosted by UK Steel, the event brought together policymakers, industry leaders, and trade unions to discuss the future of this foundational sector.
“Steel is not a sunset industry,” declared Reynolds, emphasizing its critical role in a modern economy. He reflected on the UK’s underperformance in the global steel sector, noting: “It’s remarkable that the UK is such an outlier compared to other G7 economies. That tells us we’re missing out—and we can do better.”
A Forward-Looking Strategy
The Secretary of State affirmed the government’s commitment to building a sustainable steel future, with a clear focus on co-funding opportunities and driving innovation. Reynolds highlighted the Labour government's £2.5 billion Green Steel Fund as a pivotal element, saying: “This isn’t about nostalgia; it’s about the future.”
“This isn’t about nostalgia; it’s about the future.”
He outlined plans to transition the industry toward low-carbon production methods, such as electric arc furnaces, while maintaining critical capabilities during the transition. “We’re here to fund new opportunities, not to bail out losses,” Reynolds clarified, setting a tone for a proactive industrial strategy.
Addressing Energy and Trade Challenges
Reynolds also acknowledged persistent challenges, including high energy prices and global trade pressures, affirming robust government interventions like tariff measures and support for a Carbon Border Adjustment Mechanism (CBAM). “We must recognise where there’s unfair competition and act decisively,” he stated.
“We must recognise where there’s unfair competition and act decisively,”
A Turning Point for UK steel
Reynolds closed with a rallying call for collaboration: “Let’s make this strategy the turning point where we finally started to get it right.” His optimism was backed by a government-wide commitment and tangible investments aimed at securing the long-term success of the steel industry.
Read more about Tata Steel UK's asks of Government here.
For more insights into the UK Steel strategy, visit UK Steel’s website.
The UK steel sector:
- Produces 5.6Mt of crude steel a year, equivalent to 70% of the UK’s annual requirement (annual demand of 7.6Mt in 2023, of which 40% was met by domestically produced steel)
- Employs 33,700 people directly in the UK and supports a further 42,000 in supply chains
- The median steel sector salary is £37,315, 26% higher than the UK national median and 35% higher than the regional median in Wales, Yorkshire, and Humberside, where its jobs are concentrated
- Directly contributes £1.8 billion to UK GVA and supports a further £2.4 billion
- Directly contributes £3.4 billion to the UK’s balance of trade 96% of steel used in construction and infrastructure in the UK is recovered and recycled to be used again and again.
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