Speciality Steel UK

Debate between Jonathan Reynolds and Edward Leigh

Monday 14th September 2026 Commons Chamber

[Mr Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

We know that Speciality Steel has been severely impacted by high electricity costs, and we know just what that means from people in Scunthorpe, the constituency next to mine, which is a very heavy user of electricity. They are paying 50% more for their electricity than is being paid in France, for instance. However, the Government insist on phasing out the blast furnaces. Once we have electric arcs in Scunthorpe, people there will have to use twice as much electricity, paying much more. Does the Secretary of State agree that we cannot reindustrialise Britain simply through public ownership, but must reduce our energy costs? Will he take steps, over the next year or two, not to worry about green energy and all that, but just to reduce our energy costs to a level roughly equivalent to that in France?

[Jonathan Reynolds]

I am always grateful for the support of the Father of the House, who has a long-standing interest in all industrial matters. However, I consider myself more obsessed with industrial energy prices than, frankly, any other Member of this House. I am great company when this subject comes up.

On electric arc furnaces—which are the technology in use here and will be, I hope, in Scunthorpe at some point —we already have in place a set of policies that do not just put us on a par with some of our rivals, but actually give us a competitive position. That is the supercharger scheme for the most energy-intensive electricity users. The Father of the House will know that we have also launched, as part of the industrial strategy, the British industrial competitiveness scheme which is about to come into force. In effect, it is a scheme for manufacturers, and again it significantly moves the dial on their competitiveness.

I recognise this issue, but we have done more than previous Governments, and we will continue to do more on it. I agree entirely with the Father of the House’s case, but I think we must recognise the very substantial work that has already gone on. I considered BICS to be the centrepiece of the industrial strategy when we launched it, because it moves the dial so significantly on our competitiveness not just for steel, but across a range of manufacturing sectors.