The UK Government has announced a new Steel Council, which will bring together leaders from across the industry to advise on the upcoming Steel Strategy, backed by up to £2.5 billion of investment.
The press statement said: "The Government is ramping up its plans to rebuild the UK’s steel sector with the launch of a new Steel Council which will bring together leaders from across the industry to advise on the upcoming Steel Strategy, backed by up to £2.5 billion of investment.
Business Secretary Jonathan Reynolds will chair the first meeting of the Council today (7 January) together with co-chair Jon Bolton, Chairman of the Materials Processing Institute.
Jonathan Reynolds said: “A vibrant steel sector is crucial for economic growth and our national security, and by reflecting views from industry across the UK as we bring forward our Steel Strategy we’re delivering on the Plan for Change and boosting economic stability.”
"A vibrant steel sector is crucial for economic growth and our national security" - Reynolds
Jon Bolton, Chairman of the Materials Processing Institute said: “I believe the UK has all the essential elements to attract investment into the steel industry: demand, skills, technology, unrivalled research and development and, critically, a supportive government having announced up to £2.5 billion of support through the National Wealth Fund. I see the Council’s task being to develop a strategy that details the core elements of that investment plan and to establish a roadmap towards a rejuvenated, competitive and environmentally progressive industry.”
In response, trade organisation UK Steel has posted:
The UK steel industry is currently operating in a challenging and uncompetitive environment with echoes of the 2015-16 steel crisis that shut down numerous national steel plants and made thousands of people redundant. Rising imports, loss of market share, and increased competition in the global steel market have compounded the sector’s struggles and the industry has produced increasingly less steel over the years. Yet, there is an opportunity to reverse this decline. Hope is on the horizon with the UK Government's newly launched work on a Steel Strategy and the creation of the Steel Council, both of which aim to secure the long-term future of steelmaking in the country.
The UK Government's Steel Strategy and the Steel Council, both aim to secure the long-term future of steelmaking in the country.
Many of the struggles stem from years of inadequate policy support and a lack of favourable business conditions, with the compounding effect of international steel making overcapacity and high electricity prices. However, this has now changed. The UK Government has pledged its commitment to the industry, making clear its intention to support the steel industry in a meaningful and impactful way.
The upcoming Steel Strategy is seen as the best opportunity to turn the tide and create a competitive environment for UK steelmakers. Council members include UK Steel, major steel producers, industry experts and leadership from the devolved nations. With the Government's backing, UK steelmaking has a renewed chance to thrive and succeed.
With the Government's backing, UK steelmaking has a renewed chance to thrive and succeed.
The Steel Strategy: A roadmap for success
The Steel Strategy will serve as the blueprint for a revitalised and competitive steel industry in the UK.
From a UK Steel perspective, several key initiatives and actions should form the core of this strategy, including:
- Competitive electricity prices: Essential for ensuring the steel industry remains competitive, especially in a decarbonised future.
- Bold trade policies: Addressing global overcapacity and creating fair competition on the world stage.
- Strategic public procurement policies: Recognising the crucial role the steel sector plays in key supply chains across the UK.
- A robust Carbon Border Adjustment Mechanism (CBAM): Levelling the playing field on carbon costs and addressing environmental concerns.
- New policies on scrap and raw materials: Facilitating better access to essential resources, as global interventions continue to impact this area.
- Investment in innovation: The UK boasts some of the best research and innovation expertise. We must grasp the opportunity to become global leaders in low-emission steelmaking.
Beyond the resolve of industry, the success of the Steel Strategy will rest on close collaboration across the Government. Key departments, such as HM Treasury (HMT), Department for Energy Security and Net Zero (DESNZ), and Department for Environment Farming and Rural Affairs (DEFRA), will need to work together to deliver the necessary changes for a competitive UK steel sector with the Department for Business and Trade (DBT).
The role of the steel council
The Steel Council, launched on 7 January 2025, will provide vital advice and guidance to the Government as it prepares the Steel Strategy. Chaired by Business Secretary Jonathan Reynolds and Jon Bolton, Chairman of the Materials Processing Institute, the Council will bring together leaders from across the steel industry, including CEOs from major steel producers, as well as trade unions and industry experts such as UK Steel. This Council will help to shape the Steel Strategy, enable collaboration across the sector and its supply chains, and identify how to distribute the £2.5bn National Wealth Fund.
This Council will help to shape the Steel Strategy, enable collaboration across the sector and its supply chains, and identify how to distribute the £2.5bn National Wealth Fund.
In his statement today, Jonathan Reynolds emphasised the importance of this new initiative, stating that the Government is committed to ensuring a stable, competitive, and environmentally progressive steel industry for the long term.
£2.5 billion Investment for the future
A key feature of the Government’s plans is the investment of up to £2.5 billion through the National Wealth Fund, aimed at rejuvenating the steel industry. This funding will support innovation and a competitive business environment, which will encourage long-term investment, and ensure that steel communities across the UK continue to thrive.
A new era for UK steel
Gareth Stace, Director-General of UK Steel, described the creation of the Steel Council as a defining moment for the future of steel in Britain:
“The establishment of the Steel Council marks a defining moment for the future of steelmaking in Britain. The Council represents a crucial step towards creating a comprehensive Government Steel Strategy – one that lays the foundations for a sustainable and resilient industry.
“This strategy is a once-in-a-generation opportunity to foster a competitive business environment that encourages long-term investment and ensures steelmaking remains at the heart of the UK economy.
“We are committed to collaborating with the Government, trade unions, and industry partners to turn this vision into a shared success, securing the sustained growth that our sector, its workforce, and our communities rightfully deserve.”
The Steel Council’s members
The Steel Council is composed of key figures from the steel sector, government, and trade unions. Its members include:
- Jonathan Reynolds (Secretary of State for Business and Trade)
- Jon Bolton (Chairman of the Materials Processing Institute)
- Representatives from British Steel, Tata Steel, Liberty Steel, Celsa Steel, Sheffield Forgemasters, Marcegaglia and more
- Trade unions such as Community and GMB
- Government representatives from Scotland, Wales, and Northern Ireland
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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