UK Steel Manufacturing

Martin Vickers Excerpts

Thursday 5th September 2024 Commons Chamber

[Martin Vickers (Brigg and Immingham) (Con)]

(Urgent Question): To ask the Secretary of State for Business and Trade to make a statement on the future of steel manufacturing in the UK.

[The Minister for Industry (Sarah Jones)]

The inheritance the Government received from the Conservative party was nothing short of a disgrace on steel: over a decade of lurching from crisis to crisis, with no clear plan to safeguard the future of a competitive domestic steel industry. This Government are determined to change that. We have been working hard over the summer to set a clear forward direction on steel and resolve a number of complex issues that were only made worse by the indifference of the last Government.

Steel has been one of my Department’s priorities since our first day in office. We are standing by our commitment to spend £2.5 billion to rebuild the steel industry. That is in addition to the £500 million for Tata Steel. The funding will harness public and private investment to secure jobs and boost growth. We will take action to improve the wider business environment for the sector, including reducing energy bills and enabling more green UK-made steel to be used in our infrastructure projects. The Government are clear, as the Secretary of State for Business and Trade, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) has made very clear, that decarbonisation must not mean de-industrialisation.

Discussions regarding the transformation of Port Talbot have continued at pace over recent weeks, involving the company, the workforce and the Welsh Government. We are also in ongoing talks with British Steel in a similar vein.

More widely, in our first days in office we hosted steel union leaders to join us around the table and discuss our shared commitment to achieving a sustainable, profitable UK steel industry. The Secretary of State and I also met regularly with key industry stakeholders.

We know that this is not easy, but we are determined to create a brighter future for steel than the one we inherited.

[Martin Vickers]

I thank Mr Speaker for granting the urgent question. I will ignore the Minister’s political comments and focus on what is more important: the future of thousands of workers, in particular at the Scunthorpe works, part of which falls within my Brigg and Immingham constituency and where many hundreds of my constituents work.

There have been widespread media reports suggesting that coke will stop being imported from October, which would mean production would stop in Scunthorpe by Christmas. There are rumours concerning the fact that employees will be given notice very soon. That is obviously creating great anxiety among those directly employed by British Steel and those in the supply chain, which in northern Lincolnshire extends to many thousands of people and many businesses.

I accept that much of this is media speculation, but if you and your family are reliant on an income from British Steel or a business that supports the sector, it is a very worrying time. Many people who have worked in the steel industry all their lives, and people who know about the market for steel, have a genuine concern that turning off the blast furnaces would see the end, or at least the beginning of the end, of steel manufacturing, certainly in Scunthorpe and possibly more widely. If we allow Scunthorpe’s furnaces to close, we will become more dependent on world markets, and effectively the best outcome that can be delivered from that is Scunthorpe ending up rolling steel produced in countries across the world, which would leave this nation vulnerable to price and supply volatility. Unions have said that that would be devastating. Charlotte Brumpton-Childs, a GMB national officer, has been quoted as saying:

“Early closure of the blast furnaces at Scunthorpe would be devastating for the community and workforce”

—and so it would.

“Unions have been assured throughout the process that the blast furnace operations would continue throughout the construction of an electric arc furnace. There has been no consultation over an early closure.”

Indeed, when the Minister visited Scunthorpe earlier this year, she said—according to the Scunthorpe Telegraph, so it must be true—that the UK needs to maintain capacity to produce primary steel. Is that the Government’s policy?

[Madam Deputy Speaker (Judith Cummins)]

Order. I am sorry, but the hon. Gentleman has exceeded the two minutes allotted to him. I do not know whether he wants to give us one final sentence.

[Martin Vickers]

I will bring my remarks to a conclusion, if I may, Madam Deputy Speaker, by saying that if the UK is to maintain a domestic steel manufacturing capacity, the Government must accept that there will always be a burden on the taxpayer.

[Sarah Jones]

I thank the hon. Gentleman for his questions. Let me say a couple of things in response.

First, the hon. Gentleman talked about being political. It is not being political to say that the last Government allowed the steel industry to decline; it is a statement of fact. It is also a statement of fact to say that they left a £22 billion black hole in our finances, and a statement of fact to say that the money they committed to Port Talbot came from the reserves that they had spent three times over. I am ashamed to tell the House that the £500 million was not real money: it was in the reserves that the last Government had spent three times over in the first three months of the year. In contrast, there will be real money for our investment in steel, drawn from the national wealth fund.

Secondly, the hon. Gentleman is, of course, right in his analysis of the concern and unease that people are feeling given the importance of these jobs, and about the worry they must be experiencing as a result of what they are reading. All I can say to him is that we are talking regularly to the trade unions, as he would expect us to, and to British Steel and the local community. I am sure he will understand that I cannot comment on those commercially confidential conversations. He also made a point about virgin steel that we made regularly in opposition. We are looking into how we can secure primary steelmaking in this country through our £2.5 billion investment in UK steel.