UK Government sets out plan to secure long-term future of steelmaking

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 – a globally-recognised non-profit research and innovation centre based in the iconic steel community of Teesside.

A secure future for the steel industry is vital to both the UK’s national security and delivering growth, the foundation of the Government’s Plan for Change, and with the launch of the Council the Government is taking another important step towards safeguarding the sector for the long term.

The Council will bring together steel sector leaders such as CEOs from Tata Steel and British Steel with trade union leaders, industry experts, devolved government representatives and trade associations to address the challenges facing the steel industry and make the changes needed to secure steelmaking in the UK.

It will meet regularly as the Government prepares to launch its Strategy, providing a vital link between industry, workers, experts and government in every part of the UK and ensuring that both the workforce and economic growth are at the heart of its plans to rebuild the steel sector.

“Crisis to crisis”

Welsh Secretary Jo Stevens said: “This government is acting decisively to support and develop the steel industry in Wales and across the UK.

“In the future we will need more steel, not less, as we work to deliver sustained economic growth. I want as much of that steel as possible to be made in Wales.

“We have shown with our £80m investment in Port Talbot that we will back our steel communities and the launch of our Steel Strategy is the next step in securing the long-term future of the industry.”

Business Secretary Jonathan Reynolds said: “The industry and steel communities have had enough of lurching from crisis to crisis – this government will take the action needed to place steel on a secure footing for the long term.

“With the launch of the Steel Council we’re placing workers and local communities at the heart of our plans as we bring forward £2.5 billion investment to secure growth right across the country.

“Steel was a neglected industry in this country under the previous government, but with the launch of this Council and our upcoming Strategy, we’re proving once again that we are the Government that’s committed to driving growth and innovation in the sector.

“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.”

“Defining moment”

Gareth Stace, Director-General, UK Steel said: “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.”

Jon Bolton, Chairman of the Materials Processing Institute said: “I am honoured to be asked to co-chair the Steel Council. I have worked in the steel industry globally for over 40 years, and it’s clear this sector has faced many challenges.

“However, 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.”

The Government will work closely with the Steel Council towards the launch of the Steel Strategy in Spring, and the Council will continue to meet regularly following its publication to make the best possible use of the up to £2.5 billion funding and drive investment into steelmaking communities across the country.