Scunthorpe Steelworks

Greg Smith Excerpts

Thursday 27th March 2025 Commons Chamber

[Madam Deputy Speaker]

I call the shadow Minister.

[Greg Smith (Mid Buckinghamshire) (Con)]

The news from Scunthorpe is deeply concerning. Jobs are at risk and our thoughts are with all those who now face uncertainty. The world is becoming more dangerous and we need to bolster our defence industry. Without the ability to produce our own primary steel, those efforts could be put in jeopardy. What impact does the Minister believe the news will have on Britain’s defence industry and what impact does she believe closure would have on our national security?

It takes a special something to be able to offer someone £500 million and for them to reject it, but whatever it is, I guess the Business Secretary has it. Whenever Labour negotiates, Britain loses. Whether with Mauritius, AstraZeneca or now British Steel, the Government confirm that—and so far, at least, that appears to be the case with the United States too. The Government pretend that tariffs on steel are inevitable, which, as we showed in government, is simply not the case. Therefore, will the Minister update the House on United States trade negotiations, in particular in relation to steel? Will the Minister confirm that the Business Secretary has engaged further with Jingye since it rejected him?

Tariffs are but one challenge facing the industry. Alongside the jobs tax and the unemployment Bill, the steel industry is being choked by the Government’s ideological green targets. Will the Minister tell the House what concerns British Steel has expressed about those net zero targets? As I said at the beginning, this news will be deeply concerning for steelworkers in Scunthorpe. Has the Minister or the Secretary of State spoken with them about the news and, if so, what support are they being offered?

[Sarah Jones]

I do not want to insult this House by suggesting that there was any kind of deal on the table under the previous Government and that anything happened on steel other than a halving of production over the last decade—a halving. Lots of things shut down and closed during that period, not just in the steel industry but in many others. I look at my hon. Friend the Member for Redcar (Anna Turley) for proof of that.

Whether in steel, in shipbuilding or in the automative sector, the previous Government had neglected to take major decisions or had kicked the can down the road. All we inherited were a series of industrial crises that we are now trying to solve. We delivered a better deal with Port Talbot than had been negotiated under the previous Government. We are still in talks with British Steel and hoping that we can come to a resolution, and not just because of the very many very highly skilled workers in Scunthorpe who we respect, honour and want to make sure stay in their jobs. I have nothing more to say on that front.

On tariffs and the situation with the US, we are in a good position in this country in that the relationship that our Prime Minister has built with President Donald Trump and his team means that we are in active conversations about a potential trade deal. This is a good, positive thing, and we are carrying on having those conversations. My right hon. Friend the Secretary of State has been talking regularly with our American counterparts, as Members would expect. We will have cool heads in this space and navigate our way through. We—our officials—are talking daily with British Steel. We are talking with the trade unions and all the players to try to ensure that, in the difficult global landscape that we find ourselves in, we are doing right by the people of Scunthorpe.