Steel Sector

Lord Allen of Kensington Excerpts

Monday 12th July 2021 Lords Chamber

Asked by

[Lord Allen of Kensington]

To ask Her Majesty’s Government what is their industrial strategy for the steel sector.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the noble Lord will know that we recognise the importance of the steel sector to the UK economy and in supporting other domestic industries and local communities. Our broad action, led by the steel council, to create a competitive, sustainable and low-carbon future for the sector supports our plan for growth, which succeeded the industrial strategy published more than four years ago.

[Lord Allen of Kensington (Lab) [V]]

I thank the Minister for that reply. I welcome the Government overturning the decision of the Trade Remedies Authority on the removal of safeguard tariffs. I fear that, if they had not done this, the consequences for the industry would have been severe. Another severe problem for our steel sector is that the energy costs applied to steel production in the UK are far higher than those of our foreign competitors. Will the Government look urgently at what we can do to reduce this competitive imbalance?

[Lord Callanan (Con)]

The noble Lord makes a very good point about the high energy costs. We have provided more than £550 million in relief to the steel sector since 2013 to make electricity costs more competitive. Of course, we continue to keep the matter under review and to have discussions with the sector.