The UK government is moving to fortify the country’s steel industry with a £2.5 billion commitment, as Business Secretary Jonathan Reynolds launches the Plan for Steel Consultation. The initiative aims to tackle longstanding challenges such as high electricity costs, unfair trading practices, and scrap metal recycling—key concerns for the nation’s industrial heartlands.
The plan seeks to strengthen steelmaking hubs across the UK, including Scunthorpe, Rotherham, Redcar, Yorkshire, and Scotland, which have historically played a vital role in the sector. Investments will focus on modernizing capabilities, particularly through the adoption of electric arc furnaces, ensuring a long-term future for the industry. The government sees this as a crucial step in driving economic growth under its broader Plan for Change strategy.
Reynolds emphasized the government’s commitment, said, “The UK steel industry has a long-term future under this Government. We said that during the election, and we are delivering on it now. The deal announced by Heathrow this week will secure a strong industry pipeline for years to come – and we are putting the full weight of Whitehall behind the industry to build on this success.”
The Heathrow project, which requires 400,000 tonnes of steel—equivalent to the weight of the Empire State Building—has been hailed as a major boost for domestic steel producers, providing a steady pipeline of business and reinforcing supply chains. In addition, the government has simplified public procurement processes to give UK firms, including steel manufacturers, a better chance to secure contracts.
Port Talbot is also set for a transformation, with plans for a modern Electric Arc Furnace already in motion. Meanwhile, the British Industry Supercharger initiative is expected to reduce electricity costs for steel firms, making UK production more competitive on the global stage. The government’s broader industrial strategy includes a £22 billion investment in Carbon Capture Usage and Storage in Teesside and Merseyside, further strengthening the foundations for sustainable steel production.
The Plan for Steel will explore expanding UK steelmaking capacity, safeguarding jobs, and ensuring that British-made steel is prioritized in public projects. The consultation will also assess scrap metal processing improvements and review primary steel production technologies. The Material Processing Institute in Teesside has been commissioned to conduct an independent review on these issues.
Gareth Stace, Director-General of UK Steel, underscored the importance of collaboration in shaping the Steel Strategy. “Developing the Steel Strategy must be a collaborative process, and the consultation is an open invitation for all stakeholders to help shape the future of UK steel. The Government’s commitment to our steel sector is both vital and welcome. A robust, bold, and ambitious Steel Strategy has the power to reverse the sector’s decline, particularly as we face increasing competition from imports benefiting from more favourable business conditions. By setting out a clear business plan and roadmap for investment, the Government can secure a brighter future for our industry, safeguard jobs, and support steelworkers and their families.”
Echoing similar sentiments, Andy Prendergast, GMB National Secretary, noted the plan’s significance after years of inaction. “After years of dithering, today’s plan provides desperately needed funding for our once proud, now beleaguered steel industry. As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security.”
Jon Bolton, co-chair of the Steel Council, stressed the importance of stakeholder engagement. “Publishing a consultation so quickly after the launch of the Steel Council demonstrates the importance the government places on the steel strategy and the important role it plays as part of an Industrial Strategy. Thorough consultation is key, with a first round table held with steel consumers chaired by The Industry Minister where future market dynamics were discussed including the demand for Green Steel. This work will continue over the coming weeks and I urge all stakeholders to respond to the consultation, with the issuing of the Steel Strategy in the spring a key moment for the sector.”
Roy Rickhuss CBE, Community General Secretary, welcomed the renewed government focus. “After a long era of neglect under the previous government, we welcome the government’s firm commitment to our steel industry. The new green paper sets out some of the main challenges and opportunities our steel sector will face over the years ahead—this consultation is an important step towards developing the government’s new steel strategy, and we look forward to engaging with the process at every step of the way.”
As consultations gather momentum, the government will work closely with the Steel Council in shaping the final Steel Strategy, set for release in the spring. Regular engagements with industry leaders will continue beyond its launch, with the goal of driving investment into steel-producing communities across the country.
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