Question to the Wales Office:

To ask the Secretary of State for Wales, what recent discussions he has had with Cabinet colleagues on the future of the steelmaking industry in Wales?

Answered by David T C Davies - Secretary of State for Wales

I have regular discussions with Cabinet colleagues on a range of subjects, including steelmaking in Wales.

This Government is investing £500 million into steelmaking at Port Talbot. This will protect 5,000 steel jobs and thousands more in the supply chain whilst increasing our economic security.

Question to the Ministry of Defence:

To ask the Secretary of State for Defence, whether he has met representatives of UK steel since his appointment.

Answered by James Cartlidge - Minister of State (Ministry of Defence)

Ministry of Defence Ministers and officials have regular meetings with counterparts in other Government Departments on a range of matters including industry and the defence supply chain.

In regard of meetings with UK Steel, I refer the right hon. Member to the answer I gave her on 14 November 2023 to Question number 1039.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if she will make an assessment of the potential impact of the closure of the blast furnaces in Scunthorpe on virgin steel production.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

Almost all the G20 countries have operational blast furnaces, and a number of those are transitioning to electric arc furnaces as well.

We know the importance of Scunthorpe, which is a key driver of economic growth. British Steel provides a third of all domestic production supplied to the construction and rail industries.

We continue to be in negotiations to make sure that we secure the best deal, and one that is good value for taxpayers, when it comes to Scunthorpe.

Question to the Department for Business and Trade:

To ask His Majesty's Government whether they will publish a table showing the UK steel production, steel imports, steel exports, and the investment needed to make the UK self-sufficient in the production of steel.

Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)

We have not made an estimate on the investment needed to make the UK self-sufficient in the production of steel, nor are we aware of any such estimates from external sources.

Question to the Department for Business and Trade:

To ask His Majesty's Government, further to the Written Answer by The Earl of Minto on 18 July (HL9088), whether they will now answer the question which was asked.

Answered by Earl of Minto - Minister of State (Ministry of Defence)

We do not collate information across government regarding the sums spent on supporting the steel industry in Wales.

We have provided £730mn in energy costs relief to the UK steel sector since 2013. However, we are unable to publish a breakdown of the value of energy intensive industry cost relief schemes to the steel sector in Wales. Doing so would be disclosive, enabling some companies or third parties to calculate how much support other companies have received. Steel companies in Wales will also benefit from the British Industry Supercharger measures to reduce energy costs for energy intensive industries.

As previously set out, industrial sectors, including the steel sector in Wales, have also been able to bid into Government funds worth hundreds of millions of pounds to support energy efficiency and de-carbonisation. For example, Cardiff-based Celsa Steel UK has been awarded grants totalling £5,295,451 from Phase 1 of the Industrial Energy Transformation Fund. Celsa has also successfully repaid a £30mn Government loan, which supported 1800 jobs.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment she has made of the impact of electricity prices on (a) steel producers and (b) the steel industry.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

Ofgem has previously carried out research on what drives comparatively high GB electricity prices for energy intensive industries (EIIs) and has compared these with selected European countries. Ofgem published a report in 2021 which can be found here: https://www.ofgem.gov.uk/publications/research-gb-electricity-prices-energy-intensive-industries(opens in a new tab).

The Government recognises that EIIs, including steel producers, are feeling the impact of high energy prices. The 2022 British Energy Security Strategy announced that the EII Compensation Scheme would be extended for a further 3 years.

In February, we announced the British Industry Supercharger: a decisive set of measures aimed at reducing electricity costs for EIIs to bring them in line with those charged across the world’s major economies.

We have already provided extensive energy costs relief to the steel sector since 2013, including through the Energy Bills Relief Scheme. Steel producers will continue to receive support until 31 March 2024 through the Energy Bills Discount Scheme.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of industrial energy prices in (a) Germany and (b) France on the UK steel industry.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

Ofgem has previously carried out research on what drives comparatively high GB electricity prices for energy intensive industries (EIIs) and has compared these with selected European countries. Ofgem published a report in 2021 which can be found here: https://www.ofgem.gov.uk/publications/research-gb-electricity-prices-energy-intensive-industries(opens in a new tab).

The Government recognises that EIIs, including steel producers, are feeling the impact of high energy prices. The 2022 British Energy Security Strategy announced that the EII Compensation Scheme would be extended for a further 3 years.

In February, we announced the British Industry Supercharger: a decisive set of measures aimed at reducing electricity costs for EIIs to bring them in line with those charged across the world’s major economies.

We have already provided extensive energy costs relief to the steel sector since 2013, including through the Energy Bills Relief Scheme. Steel producers will continue to receive support until 31 March 2024 through the Energy Bills Discount Scheme.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps she is taking to help support the steel industry.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government is actively engaging with the steel industry for a sustainable future and my Rt. Hon Friend the Secretary of State for Business & Trade recently visited British Steel in Scunthorpe and Tata Steel in Port Talbot.

The British Industry Supercharger will bring energy costs for energy intensive industries, including steel, in line with the world’s major economies. The industry has been able to bid into various funds to support energy efficiency and decarbonisation. We have updated the Steel Procurement Policy Note to create a level playing field for UK steel producers, implemented a robust trade remedies framework to protect domestic industry, and acted to resolve market access constraints on steel trade with the US and the EU.

A Government loan to Celsa Steel UK supported 1,800 jobs and has been repaid in full.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment she has made of the potential impact of Public Procurement Note 04/23: Procuring Steel in Government Contracts, published 11 April 2023, on the domestic steel industry.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The updated Public Procurement Note (PPN) 04/23 implements most of the recommendations produced by the Steel Procurement Taskforce, which is a joint effort between Government and the steel industry to help the sector best position itself for success in public contracts.

PPN 04/23 reflects changes to the project appraisal and procurement policy landscape and commercial best practice while clarifying the scope of reporting requirements on steel origin data. It also enhances our procurement data collection methodology, and it emphasises the importance of early engagement between procurers, producers, and suppliers, to help make future opportunities more visible.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps the Government is taking to support the steel industry.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government is actively engaging with the steel industry for a sustainable future. The industry has been able to bid into competitive funds worth more than £1billion to support energy efficiency and decarbonisation. The British Industry Supercharger will bring energy costs for energy intensive industries, including steel, in line with the world’s major economies.

We have updated the Steel Procurement Policy Note to create a level playing field for UK steel producers, implemented a robust trade remedies framework to protect domestic industry, including steel, and acted to resolve market access constraints on steel trade with the US and the EU.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment she has made of the impact of increasing carbon costs on the steel industry.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

I refer the Hon Member for Sefton Central to the answer I gave him on 2 May 2023, UIN 182550.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment she has made of the impact of rises in carbon costs on the competitiveness of the UK steel industry.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government remains committed to a decarbonised and competitive steel sector. Industrial sectors (including steel) have been able to bid into Government competitive funds worth more than £1 billion to support them to cut emissions and become more energy efficient.

Additionally, UK Emissions Trading Scheme industrial participants, including in the steel sector, receive free allocations, mitigating the risk of carbon leakage. Free allocations are guaranteed at current levels until 2026, and we are reviewing how to target support to most at risk sectors thereafter. In March, the Government also published a consultation considering a range of potential policy measures to mitigate future carbon leakage risk and ensure UK industry has the optimal policy environment to decarbonise.

Question to the Department for Business and Trade:

To ask His Majesty's Government whether the UK has a strategic need to maintain a steel industry; and if not, how it can ensure industrial resilience.

Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)

The UK steel industry not only underpins a range of domestic industries, it forms the core of some local communities and economies. The Government remains committed to a UK steel industry and a decarbonised future, supporting local economic growth and our levelling-up agenda.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, whether he has had recent discussions with industry stakeholders on taking steps to reduce the carbon footprint of steel manufacturing.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

The Government recognises the vital role that the steel sector plays in our economy. The 2021 Net Zero Strategy reaffirms our commitment to a sustainable steel sector and to continue working with the steel industry on decarbonisation.

Whilst decarbonisation pathways for specific sites will be a commercial decision for individual companies, we are working closely with industry stakeholders to support decarbonisation options and reduce the carbon footprint of steel manufacturing.

We regularly engage with industry stakeholders to ensure advances towards our Net Zero obligations and to help inform progress to reducing our carbon footprint.

Found: grant for a partial 63 HC Deb [Steel Industry] 30 November 2023 , cc1051 -1052 ; PQ 191236 [ Iron