Starmer in pledge to safeguard UK’s steel industry
LABOUR would seize the opportunities for British steel, Sir Keir Starmer said, as he vowed to protect the embattled industry.
The Labour leader visited the British Steel site in Scunthorpe yesterday, as he accused the Conservatives of leaving the industry and its workers in a “cycle of crisis and bailout”.
He promised that his party would invest in steel as part of its broader green plans following years of concern about the future of the industry and the fate of hundreds of workers.
Only last month, Tata Steel warned that it faces “material uncertainty” in the UK, where it operates Britain’s biggest steelworks in Port Talbot.
Labour’s own proposals for the sector include steel being among the recipients of investment support from a proposed national wealth fund, which will back business investment in new technology such as hydrogen and electric arc furnaces.
The party also believes that its plan for British-produced green energy will boost the long-term competitiveness of UK steel and drive down costs.
Labour argues that plans to increase the generation of offshore wind, solar, nuclear and hydrogen will generate demand for millions of tonnes of UK steel.
Speaking to broadcasters in Scunthorpe, he said: “There’s going to be a huge demand for steel in the future and I want that to be British steel.
“Just at the moment, British steel is struggling and we need to move to a new model, to green steel, and here it’s been made absolutely clear to me that customers of the future want that green steel.
“The Government’s doing nothing on this, it’s sitting on its hands, so we’ve put forward a plan that will help that transition with the investment that’s needed, the partnership that’s needed, and the opportunity then is not just to save steel but to provide it with a fantastic future, which is clean steel, which is secure steel used for contracts here in the UK, and to secure the jobs of thousands of people in this sector.
“That is not just a challenge but a fantastic opportunity that a Labour government would seize.”
In April British Steel said it would offer alternative jobs to about 250 workers affected by the closure of its Scunthorpe coke ovens, which it said would go as part of its drive to overcome global economic challenges and build a greener future.
Last month the European subsidiary of Indian multinational company Tata Steel put out its annual financial results in which it warned factors including inflation and uncertainty around UK Government support could affect its ability to operate in the UK.
The results showed Tata Steel Europe’s earnings had fallen by 60% in the past year, the Financial Times reports. Before tax, interest, depreciation and amortisation, the company’s European arm – which includes operations in Port Talbot, elsewhere in the UK and in the Netherlands – reportedly made a loss of £176m in the final quarter of the year.
Tata’s worries reportedly include interest and inflation rates and concerns over whether the UK Government’s support to decarbonise would be adequate. As a result there is “material uncertainty” in relation to Tata Steel UK’s future, with the outlook “adversely impacted” by these factors.
Tata Steel UK and British Steel were both offered sums of £300m in taxpayer money in January to help with this, with the Port Talbot plant creating around 5.8m tonnes of carbon emissions per year. Decarbonisation could include carbon-capture and storage technology, using the carbon produced to provide power or to invest in arc furnaces to make steel from recycled steel and powered by renewable sources.
The steelworks in Port Talbot directly employs around 4,000 people, comprising half of Tata Steel’s UK workforce. In 2022 Tata Group chairman Natarajan Chandrasekaran said action to close the company’s UK operations could be taken within 12 months without Westminster support.
Welcoming Sir Keir’s visit to Scunthorpe yesterday, Roy Rickhuss
– general secretary of the Community union, which represents steelworkers – said: “Labour’s plans for an active industrial strategy and a £3bn green steel investment fund can be the game-changers our industry so desperately needs.
“Britain needs a strong and sustainable steel industry and delivering that is going to require a comprehensive partnership between government, employers and trade unions.
“We welcome Keir’s visit and we look forward to discussing Labour’s plans in Scunthorpe today.”
A UK Government spokesperson said: “Steel plays a vital role in the UK economy, supporting local jobs and economic growth. We want to secure a decarbonised, sustainable and competitive future for the UK steel sector, and we are working closely with industry to achieve this.
“We have made an offer of support to British Steel, and continue to engage actively with the company to ensure any investment would be successful and make effective use of taxpayers’ money.”