MP for Corby welcomes ‘landmark’ steel strategy that promises to ‘protect domestic steelmaking’
A landmark new Steel Strategy which aims for up to 50 per cent of steel used in Britain to be made in Britain has been welcomed by Lee Barron, MP for Corby and East Northamptonshire.
The Government announcement, which will boost production by 20 per cent, comes days after Mr Barron was part of the UK delegation of the EU-UK Parliamentary Partnership Assembly to Brussels last week.
The new strategy aims to ‘protect domestic steelmaking’ and ‘build more resilience’ in the supply chain for critical national infrastructure and defence.
Speaking at the Parliamentary partnership event, he said: “This was an opportunity to share Corby’s rich heritage built on steel and why it is time to build new closer relationships for the sake of jobs and the future of the steel industry.”
The National Wealth Fund will be the Government’s main mechanism for providing up to £2.5bn of financing for investment in the steel sector this Parliament.
From July 2026 quota levels for steel imports will be significantly reduced by 60 per cent compared to current arrangements, and steel coming into the UK above these levels will be subject to a 50 per cent tariff.
It is hoped the new measure is a vital step to protect UK steel production in the face of global steel overcapacity. It will apply to imported steel products where they can be made in the UK.
Mr Barron said: “Without action, the UK’s steelmaking capability faces real jeopardy, leaving us reliant on overseas suppliers for materials essential to our energy security, defence and transport infrastructure.”
The new Steel Strategy also commits to:
• Confirm electric arc furnaces (EAF) as the future of British steelmaking, continuing the shift from blast furnaces to cleaner, EAF-based production using recycled scrap to support net zero.
• Enable offshore wind developers to include steel manufacturers in the next round of Clean Industry Bonus applications (launching this year) to maximise UK steel use in renewables.
• Launch a cross-government working group to ensure a sustainable supply of scrap metal for UK steelmakers.
• Task the Steel Council with action on workforce needs and practical research and innovation to boost productivity and competitiveness.
Reacting to the publication of the UK Government’s Steel Strategy William Bain, head of trade policy at the British Chambers of Commerce, said: “The Steel Strategy provides businesses with a clear vision on the Government’s aims for competitiveness and resilience for this essential manufacturing building block.
“It sets a pathway for future growth in sectors, including construction, energy, and manufacturing, based on a rigorous analysis of future UK steel needs and a modern production approach.
“Implementing most of the recommendations will boost investor certainty and provide greater economic security through increased domestic production capacity.
“The focus must now be on reaching the right economic security agreements with key trading partners, like the US and EU. These must tackle issues of oversupply and carbonisation globally, while ensuring UK firms can still find sustainably produced steel at the lowest cost.
“The government must also help UK producers find new customers for their product.”