Steel Trade Measure

Andrew Griffith Excerpts

Thursday 25th June 2026 Commons Chamber

[Andrew Griffith (Arundel and South Downs) (Con)]

I thank the Minister for advance sight of his statement.

We welcome the partial U-turns that have been announced, the engagement there has been and the reflection, even at this very late hour, that the original proposals from the Government would have done great damage to British manufacturing. This decision could, however, have come months ago. If not, it could have come weeks ago, when Members of the House and businesses started raising the alarm and engaging with the Department. It took this Government—if Members can remember—more than a year and three quarters to come up with their original steel strategy, yet the industry is now expected to adjust with less than one week to go. That is not a reasonable way on which to proceed.

The Government have left untouched the 50% tariff rate, and that will do great damage to British manufacturing, house builders and those who construct the nation’s infrastructure. It will mean higher inflation, fewer jobs, fewer homes and fewer public projects. The Government have made some welcome concessions on how much steel can be brought in but conceded nothing on the rate that punishes imported steel the very moment that the quota is exceeded.

I know, as does the Minister, that he has received significant private representations from industry on this issue, particularly from defence and aerospace, and I imagine that the Minister does understand that this measure will not be enough. Of the 60 codes that we believe are relevant to aerospace and space, just two codes have been removed, and while quota uplifts have been applied, they are not particularly useful to the small-scale, high-value defence manufacturers, as commodity buyers will snap up all those quotas at the start of the year before they get a look-in.

As a result, we are, I am sad to say, putting the defence of this country at risk by imposing a shock to defence industry prices, and it will either be the Treasury or the Ministry of Defence that picks up the bill. Projects such as AUKUS, Tempest, drones and much-needed munition rearming will all be vulnerable as a consequence.

Finally, let me put some questions to the Minister on behalf of the industry. Will he commit to publishing the impact assessment on downstream steel sectors before Parliament rises for the summer? Does the Minister understand that by not exempting pre-agreed purchase contracts, which may in some cases run for years, he is damaging good, decent British manufacturing firms, even those in Rhondda and Ogmore? His exclusions rest on a test of “no production, or production paused”, but will he explain how he justifies keeping specialist grades in scope when in some industries, such as aerospace, it takes years to certify suppliers? Can he confirm that the EU’s reciprocal quota for exports from the UK will fully protect the 2.4 million tonnes of annual British exports of steel that would otherwise be at risk?

[Chris Bryant]

I honestly just do not think that the hon. Gentleman understands how this works—any single element of it, to be honest. Let me first address his point about the timing. I would have much preferred to give greater notice to everybody, and I worked towards being able to do so. Unfortunately, one of the key parts of the interaction is with the European Union, and we only completed our negotiations with the European Union over the last few days. I point out that the EU itself has not as yet announced its quota, either with us or for any other country, and will not do so until Monday. I wanted to bring this forward as soon as I possibly could.

The hon. Gentleman refers to U-turns. We have listened to the concerns both from specific businesses—I know that some are very pleased with some of the categories we have changed and the quotas we have increased—and from hon. Members, who have brought their concerns to the Chamber or directly to Ministers. We have tried to address as many issues as possible, but, as I said in my statement, there are difficult trade-offs here.

The hon. Gentleman suggests that we should cut the 50% tariff rate. I am not sure that is a point he has made anywhere previously, but if we had a lower tariff rate than other countries, in particular the European Union, we would—this is why I do not think he understands how any of this works—immediately become the dumping ground for all the cheap steel in the world. We would be a magnet for that and we would be exacerbating the problem for steel production that we already have in the UK.

The shadow Secretary of State raised the question of defence. I have looked carefully at this. Of course, he wrote a letter this morning that made some rather ill-founded remarks about what is likely to happen to defence. First, Sheffield Forgemasters is already providing significant amounts of UK steel precisely into the UK defence sector. When the defence investment plan is produced, I want it to deliver jobs in the UK rather than just everywhere else in the world, and I would like more of our defence industry to be based on using UK steel, because that would be a double win for us.

I note that when the previous Government were in place, they commissioned: Type 26 frigates—65% of that steel came from Sweden; Type 31 frigates—all the steel from Finland; and four Royal Fleet Auxiliary Tide-class tankers—44,000 tonnes of steel from Korea. When the Dreadnought-class nuclear ballistic submarines were commissioned by the last Government, where did the steel come from? From France! We can do far, far better than this. It is absolutely preposterous that only 30% of UK steel needs are being met by UK steel production. We need to get that number up. We have committed to getting it to 50% and that is why I am immensely supportive of the measure that we are introducing today.

I also want to make it clear that a lot of categories of steel—as I said, three quarters of the steel by value—is not in scope of the measure at all. That means it can come in and out of the UK without any tariff. Also, the 50% tariff is not on all the steel in a particular category; it is only on that above the quota. In significant areas, we have increased the quota and, for instance, in categories 4, 6, 12A and 7, which is particularly important for the defence sector, the final quotas are higher than the levels of historical trade because some of the previous quotas were not even being fully used. I am afraid that the hon. Member is wrong in nearly every single element of his analysis—and that is not the first time, is it?

--- Later in debate ---

[Chris Bryant]

I have pages and pages on the Windsor framework in relation to this somewhere, but I have only two words on it here. Apart from anything else, part of our negotiations with the European Union had to be about how we ensure proper provision for Northern Ireland. When the EU announces its measures on Monday, I hope that the hon. Member will be pleased with where we have got to on all that. He asked about financial mitigation, which I think means compensation. I am afraid that I am not able to offer that; I want to be very straight with him.

As I say, there are trade-offs here. We need to ensure that we have a strong steel sector. I was thinking about my two grandfathers. One grandfather was a naval draughtsman and an architect on Clydeside. My other grandfather worked on the railways in the docks in Cardiff. For both of them, steel was absolutely essential. I am sure when they were working on Clydeside or in Cardiff, they would have expected all the steel to have been made in the United Kingdom. If we do not take this step today, we will find that we will not have any British Steel at all, and that is why we are keen to take the necessary and, I believe, proportionate steps that we are taking.

[Andrew Griffith (Arundel and South Downs) (Con)]

On a point of order, Madam Deputy Speaker. I know that in a former life, the Minister was punctilious about standards in this House, so I seek your advice as to how he may correct the record. He referred to a letter that I believe he said his office had received this morning or yesterday. In fact, the Department will have received copies of two letters, one which was sent a week ago, not on my behalf, but on behalf of hundreds of thousands of small manufacturing businesses that were desperately worried, with one week to go before the tariffs. There was a second letter on Tuesday, jointly from me and the shadow Defence Secretary, my hon. Friend the Member for South Suffolk (James Cartlidge), again, sent on behalf of this vital industry, which keeps us all safe. I have not yet received a reply to either of those. I would not necessarily have expected to, but it would not be right for the record to reflect that he had only received the letter this morning.

[Madam Deputy Speaker (Judith Cummins)]

I thank the hon. Gentleman for his point of order. The Minister is in his place and may wish to respond.