The Minister for Industry (Sarah Jones)
The Government committed to updating Parliament on British Steel every four sitting weeks for the duration of the period of special measures being applied under the Steel Industry (Special Measures) Act 2025.
Government officials continue to work on site in Scunthorpe, supporting British Steel’s management team. Our priorities remain: continuing production, ensuring that critical health and safety issues are being remedied, stabilising operations, and improving the steady state of the business by building additional reserves of the necessary raw materials.
Since my last written ministerial statement on British Steel on 20 June, I have written to several Members in response to further questions. Baroness Jones of Whitchurch has also written to the Constitution Committee, responding to its report on fast-track legislation and the Steel Industry (Special Measures) Act. Work continues to develop an impact assessment and to bring forward regulations under section 7 of the Act to allow the Secretary of State to introduce a compensation scheme for steel undertakings that have received a notice under the Act.
We recognise the ongoing interest from Members regarding the funding that will be required for the Scunthorpe site. The position remains that all funding will be drawn from existing budgets, within the spending envelope set out by the Government at spring statement 2025.
To date, we have provided approximately £130 million for working capital. This covers items such as raw materials, salaries, and addressing unpaid bills, including for small and medium-sized enterprises in the supply chain. As previously confirmed, the Department for Business and Trade’s accounts for 2025-26 will reflect the financial support that the Department has given to British Steel.
Work is progressing at pace to develop the optimal policy and strategy approach to the long-term future of British Steel, and we are continuing discussions with Jingye to inform that process.
More broadly, we continue to develop our close partnership with industry and trade unions to revitalise UK steelmaking and secure economic growth. On 14 July, I visited 7 Steel UK in Cardiff, where I chaired a positive and constructive meeting of the Steel Council, alongside the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Queen’s Park and Maida Vale (Georgia Gould) in her role as Minister responsible for public procurement. I travelled on to Port Talbot, where I attended an event at Tata Steel to celebrate the start of the electric arc furnace construction following the Government’s £500 million grant towards Tata’s £1.25 billion transformation project.
Further to our unique and unprecedented legislative intervention in British Steel and our confirmation at spending review of the grant funding for Tata Steel and investment in Sheffield Forgemasters, our recently published industrial strategy has identified steel as a foundational industry. We are creating a better environment for the sector by addressing crucial areas in the run-up to the launch of the steel strategy later this year.
Recent successes for steel following Government backing include:
Energy
We are cutting electricity costs for steel producers by reducing network charges via the supercharger by 90%, up from 60%, as announced in our modern industrial strategy. On Friday 18 July, the Government launched a four-week consultation on their plans to increase the discount—a key step towards implementing the extension as soon as possible. Further detail is provided in the written ministerial statement I made earlier today on the network charging compensation scheme uplift [HCWS869].
We are streamlining grid access for major investment projects, including prioritising those that create high-quality jobs and deliver significant economic benefits, through a new connections accelerator service. New powers in the Planning and Infrastructure Bill, which is currently before Parliament, could also allow the Government to reserve grid capacity for strategically important projects, cutting waiting times and unlocking growth in key sectors.
The industrial strategy’s support for sectors such as advanced manufacturing will also increase demand for steel as a foundational product, as demand for lightweight and precision-engineered steel products increases.
Trade
We have strengthened current steel safeguard measures by slowing future increases in spikes of foreign imports, capping certain import levels and tightening country-specific limits, ensuring that UK steel producers will not be undercut while still making sure that the UK has a steady and reliable supply.
We have also announced our intent to launch new laws to expand our powers to respond to unfair trade practices and to guard against global turbulence in critical sectors such as steel, as announced in the trade strategy.
In addition, we have invited steel producers, consumers and stakeholders across the supply chain to shape our future approach to trade measures for steel in a new call for evidence, as we continue to support the UK steel industry against unfair trading practices and to strengthen the UK’s critical supply chains after the expiry of the steel safeguard in June 2026.
Procurement
We have changed Government procurement rules, via the publication of a new steel public procurement notice, to ensure that UK-made steel is considered for all public projects. From 1 September, all in-scope organisations undertaking new relevant steel procurements will be required to consult UK Steel’s digital catalogue prior to making design and procurement decisions. In addition, contracting authorities must consider whether exemptions in buying rules that can support UK steelmakers are applicable. These reforms send a strong message about our commitment to UK Steel—ensuring that it plays a central role in public sector projects, secures jobs and remains at the heart of our national infrastructure ambitions.
Transforming the UK steel sector
The actions I have outlined will have tangible outcomes for the steel industry and for the proud industrial towns and communities who depend on it.
We know that steel is important for delivering on our plan for change—important for delivering on our ambition to put more money into people’s pockets and to realise a new decade of national renewal. The UK steel industry helped to build the modern world, and this Government are taking the decisive steps required to secure its future in Scunthorpe and steelmaking communities across the country.
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