British Steel

Peter Gibson Excerpts

Wednesday 8th November 2023 Commons Chamber

[Ms Ghani]

First of all, negotiations continue; no decision has been taken. Having said that, the UK steel industry group, which oversees the steel sector in the UK, has made it very clear that military-grade speciality steel can be made in electric arc furnaces. I have been working incredibly hard to make sure that more UK steel is procured in more UK contracts, including defence contracts.

[Peter Gibson (Darlington) (Con)]

I commend my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) for her dogged campaign in respect of steel; she is a real champion for her constituents. This week’s news is bittersweet, as Teesside welcomes the return of steelmaking. Will the Minister outline what the whole Government are doing to support my hon. Friend’s constituents at this time, and what use of carbon capture and storage is being explored to ensure that we continue to produce our own virgin steel?

[Ms Ghani]

I of course agree with my hon. Friend’s first point: there is nobody more vocal about steel than my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft). We have had a number of programmes in place to support the steel sector, because it has a number of challenges, as it has in many continental European countries. Fundamentally, Putin’s invasion of Ukraine caused energy costs to skyrocket, and we had in place an energy costs relief scheme for the steel sector, which has been worth up to £730 million since 2013. We now have the supercharger in place; I have spoken about the steel procurement policy note to ensure that there is more UK steel procured in UK markets; and, obviously, we provided support for Tata recently and Celsa previously. We are doing everything that we can—with my hon. Friend the Member for Scunthorpe, of course—to get the best deal possible for Scunthorpe, but these are commercial decisions and they are ongoing.