UK Steel Strategy

Lord Wigley Excerpts

Monday 23rd March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

Like many countries, we have applied tariffs to counteract the damaging effects of global overcapacity. Our action is not unique; the US, Canada and the EU all apply similar measures to tackle overcapacity. As I mentioned, it has followed engagement and we are looking at transitional measures to ensure that those contracts that have already been put into place can be taken forward. We will also review the measure after 12 months to ensure that it remains effective.

[Lord Wigley (PC)]

My Lords, with the indulgence of the House, I welcome the strategy and the Statement, as far as it goes. The Government previously announced that £500 million would come to Port Talbot. Will any of the newly announced £2.5 billion come to Wales? Did the Welsh Government ask for part of that and were they given a full answer? The Minister will be aware that the steel-utilising industries that currently still exist in Wales may require high-quality steel. Is it possible for the electric arc furnaces to produce high-quality steel from recycled scrap?

[Baroness Lloyd of Effra (Lab)]

I thank the noble Lord for his questions. On the effectiveness of electric arc furnaces, there are a couple of points. First, at Sheffield Forgemasters, we see the technical capability to produce steel to the highest quality, for the nuclear industry, aerospace and defence. Independent experts’ view is that any grade can be made by electric arc furnaces, so that addresses the question about the quality of steel that can be made by this technology. On the other point about the benefit to Wales, we have already invested £500 million in the electric arc furnace for Port Talbot. We are working with the Secretary of State for Wales and the private sector to see what investment can be unlocked under the £2.5 billion that the National Wealth Fund will have allocated for steel projects.