British Steel Debate

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Department: Cabinet Office
Wednesday 8th November 2023

(6 months ago)

Commons Chamber
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Nusrat Ghani Portrait Ms Ghani
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I meet representatives of the unions regularly, and I co-chair a steel council. The steel procurement policy note on increasing procurement in the UK was a personal ambition of mine. Previously, we did not calculate enough of the data on what was being procured and how we could continue to secure more contracts. Procurement has increased, with the value of contracts up by £97 million on the previous year. I want to go further; that is only the starting point. Earlier today, I was with the Minister for Defence Procurement, the hon. Member for South Suffolk (James Cartlidge), and I will continue to work to ensure that there is more UK steel in all our construction, whether rail, road, automotive, aviation or anything else. The reality is that last year it increased by £97 million-worth of work.

Martin Vickers Portrait Martin Vickers (Cleethorpes) (Con)
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I fully endorse all the comments of my neighbour, my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft). Many hundreds of my constituents work at British Steel, and I have a British Streel terminal on Immingham docks in my constituency. What assessment have the Department and the Treasury made of the impact on the local economy if the changes go ahead? The Minister talked about support for workers who may be made redundant. I have witnessed the decline of the fishing industry in the Grimsby-Cleethorpes area, which has ripped the core out of the community, who need generations of support. What plans will the Government put in place to ensure that that happens?

Nusrat Ghani Portrait Ms Ghani
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First of all, negotiations are ongoing, but I fully appreciate that the statements from British Steel will be incredibly unsettling for my hon. Friend’s constituents. Let me explain the way that we worked on Port Talbot. We were keen to ensure that any support we provided continued to guarantee jobs, in consultation with local stakeholders and the unions. We set aside a fund of around £100 million to ensure that people were reskilled and redeployed. That work will continue if circumstances require it. We are anxious about jobs. These are highly skilled workers, recognised internationally, and these are well-paid jobs. That is why negotiations are sensitive and continue at pace. If we provide support, we want to get the best deal for UK steelworkers.