Labour leader Sir Keir Starmer has promised early steps to rectify the major issues facing the steel industry should his party sweep to power.
And he has called on British Steel bosses to ensure blast furnaces remain operational until electric arc replacements are up and running, reiterating pledges to back the green transition.
While the business has said it will do so, Sir Keir underlined fears held of having to rely on imports. The £1.25 billion investment – which would require government backing – has been accelerated to 2025, two years quicker than was spelled out on his visit earlier this year. Then the number of jobs at risk – still not made clear by British Steel – were not on the table, purely a pledge to match-fund and help drive demand.
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Speaking exclusively to Business Live following Monday’s announcement, Sir Keir said: “I’m very concerned about this development, particularly having visited in June. We met both management and the workforce and there was a joint commitment to take Scunthorpe forward for the future of green steel.
“I made it clear then, and I reiterate now, our support of green steel and electric arc furnaces, and talked through the nuts and bolts of match-funding and working with the grid to ensure connection quicker than 2034.”
This issue has seen plans for a larger operation in Scunthorpe split into two smaller developments, one on the town works and another in Teesside. He said he “did not accept this was the earliest connection date”, instigating work to assess.
And Sir Keir stressed it was vital there was no change to the plan to run blast furnaces until the switch over is ready. Any gap “would be scandalous if government allowed it to happen” as “job losses are a huge concern to the workforce, but also we will end up importing steel, and that is not a step in the right direction,” he said. “There needs to be real clarity about that. The government has allowed this to happen; energy costs are through the roof because the government has never had an energy strategy. Businesses here pay more in energy costs than in any other comparable economy, and not to have a steel strategy is a real failure of government.
“We have got not only a plan for steel, but a mission for clean power by 2030. We will reduce energy costs but also drive steel production to get to clean power. We will need the infrastructure; offshore wind turbines, onshore wind turbines, grid cabling – all the infrastructure with that. That’s a demand for steel and a thrust if we are privileged enough to get into power. It is not just a plan for steel but a means of delivering a full order book. That is a very important thing, that in the dying days of this government, that we deliver a bright future for British Steel.”
He told how there was no talk of job losses during his visit. “At the time they wanted, and I have, an assurance we would partner with them in the transition to green steel, but not at the expense of producing steel in the interim,” he said. “It was about making sure the transition works for management and the workforce, and they were interested to know plans to drive up demand for steel going forward. They are not making a profit, they are making a loss, and part of solving that is a full order book for steel in the future. We were able to give them that assurance. What is absolutely critical now is that this government doesn’t do any further damage between now and the general election. It is another reason why many people across the country say the sooner a general election goes ahead the better.
“There is a bright future for British Steel with a Labour Government and we will take early steps to rectify that if we are privileged to come in.”
The government has this week reiterated its commitment to the UK steel sector, with a package of more than £300 million to support the transition.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
