Scunthorpe Steelworks

Kevin Hollinrake Excerpts

Monday 7th April 2025 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State for Housing, Communities and Local Government.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank my hon. Friend the Member for Brigg and Immingham (Martin Vickers) and Rob Waltham, our excellent candidate for Mayor of Greater Lincolnshire, for their engagement and work on this issue.

Despite repeatedly promising to protect and support virgin steelmaking capacity when in opposition, the Labour party is potentially presiding over its total demise. In the process, thousands of blue-collar jobs in this once proud industry have either gone forever or are at risk, including 5,000 directly employed roles at Port Talbot and Scunthorpe alone and many more in the supply chain.

Given that the regions with the highest numbers of steelworkers are Wales and Yorkshire and the Humber, the situation is dealing a hammer blow to efforts to address regional inequality. Steel is obviously a key strategic industry—even more so given our need to increase defence spending and infrastructure investment, and even more so again given President Trump’s game-changing imposition of tariffs.

The Prime Minister keeps saying that the world has changed, and that we are witnessing the end of globalisation. I cannot say that I totally agree, but if that is the Government’s position, surely they have no choice but to intervene to support domestic production. The alternative could see us locked out of reliable, consistently priced sources of steel. The Government have stepped in to help car manufacturing in recent days, so will the Minister now redouble her efforts to reach a deal with British Steel?

Steel production is just one of the industries closing due to our high energy prices, which are 50% higher than our competitors in France and Germany and 400% higher than in the USA. Other manufacturers such as CF Fertilisers on Teesside and Ineos at Grangemouth have closed their doors or are in the process of doing so. Will the Minister press with the Chancellor the case for permanently lower industrial energy prices?

The Minister mentions support for steelworkers. How many steelworkers have the Government engaged with? What support has been given to account for the knock-on effect to communities? What assessment has the Minister made of the effects this situation will have on national security? She mentions a bright future for steelmaking in this country. Will she confirm that that means primary steelmaking capability?

[Sarah Jones]

I thank the hon. Gentleman for his contribution and for welcoming the Prime Minister’s announcements today on the zero emission vehicle mandate and the changes we have made to support the automotive industry, which is incredibly important.

The hon. Gentleman talks about the number of good steel jobs that have gone forever or are at risk, but that happened because the previous Government failed to intervene to support our steel industry. That is why we lost so many jobs over the last decade. Not having an industrial strategy or a plan for steel meant that we allowed offshoring of our jobs in the steel sector, which has damaged us. He rightly said that in many key parts of our country we need good jobs. I should say that steel produced really good jobs, which are better paid than the average in the area and are done by really good, qualified people we want to retain in the UK.

The hon. Gentleman talked about energy. Again, the reason why we are here is that we had years of the previous Government not intervening in this space. We are well aware of energy prices in this country and are doing all we can to bring those down. [Interruption.]

I was asked by the hon. Gentleman to redouble my efforts in the negotiations we are having with British Steel. I will do everything that I possibly can—as we are doing. I hope he understands that I cannot go into detail about the state of those negotiations because that would be bad for the workers, bad for our supply chains and bad for the outcome.

The hon. Gentleman talked about national security and primary steel. We are conducting a review of primary steel as part of our plan for steel and we will have the results of that soon. We will look at those results and see what we need to do. I should stress that there is defence equipment made in the UK from electric arc furnaces; there is not much defence work either in British Steel or at Tata in Port Talbot at the moment. People such as Sheffield Forgemasters produce steel from electric arc furnaces. However, the hon. Gentleman is right to talk about the importance of national security and to say that the world has changed and things have moved on, so we need to ensure that we are protecting our country as we need to.

As I said in the Chamber in response to the last urgent question on this issue, there is a reason why Putin bombed the blast furnaces in Ukraine pretty much first: it was because a country wants to have that steelmaking capacity. We are alive to those issues, and that is why nothing is off the table. We are doing everything that we can.