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Would it be acceptable if the UK became the only country in the G7 that could not make its own virgin steel?
Would it be acceptable if the UK became the only country in the G7 that could not make its own virgin steel?
My hon. Friend will know how committed this Government are to the steel industry, but at the moment it is going through a transition. We care about having primary steel-making capacity in this country—that is something we want to do and to keep, but as she knows, even now we still import ore. I know she is concerned about British Steel and its future. I will be visiting her constituency in Scunthorpe and we will be able to discuss those matters further.
We have recently heard from my right hon. Friend the Secretary of State for Defence how the west is facing “a pre-war world”. Will the Minister ensure in her conversations with the Treasury that it understands the vital strategic importance of a virgin steelmaking capability here in the UK?
We have recently heard from my right hon. Friend the Secretary of State for Defence how the west is facing “a pre-war world”. Will the Minister ensure in her conversations with the Treasury that it understands the vital strategic importance of a virgin steelmaking capability here in the UK?
My hon. Friend has a huge amount of knowledge of the steel sector and is a huge champion for Scunthorpe. She knows that we are working incredibly hard with the company in her constituency, and we are waiting for it to respond to the business plans going forward. We know how important virgin steelmaking is,
and we accept, because technology has moved on, that going forward 90% of all steel can be made in electric arc furnaces.
Q11
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Holly Mumby-Croft (Scunthorpe) (Con):
I make no apology for once again raising the issue of steel—[Hon. Members: “Hear, hear!”] We are now at serious risk of losing the ability to make virgin steel here in the UK. I know that the Government are working hard on this, but it is a matter of national security and we need the Prime Minister’s leadership on this issue. What is he doing to ensure that we are able to make our own virgin steel and that we do not lose it on his watch?
Q11
.
Holly Mumby-Croft (Scunthorpe) (Con):
I make no apology for once again raising the issue of steel—[Hon. Members: “Hear, hear!”] We are now at serious risk of losing the ability to make virgin steel here in the UK. I know that the Government are working hard on this, but it is a matter of national security and we need the Prime Minister’s leadership on this issue. What is he doing to ensure that we are able to make our own virgin steel and that we do not lose it on his watch?
I praise my hon. Friend’s leadership in championing her local community and also the steel industry in the UK. She is right to do so, because it is an incredibly important part not just of our local communities but of our economy and security. She is right to put this issue on the agenda.
We are committed to working with the steel sector to secure a decarbonised future, supporting local economic growth and our levelling-up agenda. That includes our commitment to major support with energy costs and also access to hundreds of millions of pounds of grants to support energy efficiency and decarbonisation. I obviously cannot comment on conversations with individual companies, but my hon. Friend can see from our track record on working with either Celsa or Tata Steel that we have been able to support our fantastic steel industry, and we will always continue to do so.
I have written again to the Secretary of State to seek specific confirmation of the Government’s position on a virgin steelmaking sovereign capability in this country. Will she ensure that that specific question is addressed when I receive a response?
I have written again to the Secretary of State to seek specific confirmation of the Government’s position on a virgin steelmaking sovereign capability in this country. Will she ensure that that specific question is addressed when I receive a response?
My hon. Friend is first and foremost an advocate for the steelworks and steelworkers in her constituency. Obviously that letter will be on its way, and I thank her so much for raising it.
I believe that the ability to make virgin steel is crucial to the UK’s defence capabilities. Does my right hon. Friend the Secretary of State agree?
I believe that the ability to make virgin steel is crucial to the UK’s defence capabilities. Does my right hon. Friend the Secretary of State agree?
My hon. Friend makes an excellent point. She has been a long-running champion of the steel sector and its importance to her constituents. Of course, we want a smooth transition between blast furnace and electronic arc steel making technology. Steel remains incredibly important to the defence sector. Take the Type 26: almost 50% of that is British steel. That is 1,400 tonnes per ship. That underlines why it is so important that, in constituencies such as my hon. Friend’s, we continue to support the steel sector.
The Prime Minister knows that I stand unapologetically with my steelmakers in Scunthorpe. He knows that I believe, as many across this House do, that the UK must retain a virgin steelmaking capability, for strategic reasons if nothing else. Will he reassure the House that he is personally following developments at British Steel and doing all he can to retain what is a vital sovereign capability?
The Prime Minister knows that I stand unapologetically with my steelmakers in Scunthorpe. He knows that I believe, as many across this House do, that the UK must retain a virgin steelmaking capability, for strategic reasons if nothing else. Will he reassure the House that he is personally following developments at British Steel and doing all he can to retain what is a vital sovereign capability?
My hon. Friend is a fantastic champion for her local steelworking community. I hope she is reassured by the action that this Government have already taken to support steelmaking in our country, reaching a landmark agreement with Tata Steel to safeguard thousands of jobs there, as well as during the pandemic.
I agree that it is important for our industrial base, and we will continue to have constructive conversations with all those companies to ensure that we can support them in their transition to a cleaner, greener steelmaking future.
Urgent question on the announcement made by British Steel on 6 November, and provide an update on the negotiations between British Steel and the Government, and on the Government’s position on virgin steelmaking in the UK.
Urgent question on the announcement made by British Steel on 6 November, and provide an update on the negotiations between British Steel and the Government, and on the Government’s position on virgin steelmaking in the UK.
Can my hon. Friend set out specifically what is being done to ensure the continued production of virgin steel in the UK?
Can my hon. Friend set out specifically what is being done to ensure the continued production of virgin steel in the UK?
Steel is vital to the UK, but we know that the industry needs to decarbonise for a sustainable future. The Paris agreement made it clear that the sector had to reduce its global emissions by 93% by 2050. The Government are actively engaging with the sector on
how best to achieve that, but decarbonisation pathways for specific sites will be commercial decisions for individual companies. Industrial sectors, including steel companies, can bid into Government funds worth hundreds of millions of pounds to help them go green. As I mentioned, we have done a huge amount to support energy intensive industries.
What steps her Department is taking to support the steel industry.
What steps her Department is taking to support the steel industry.
I am in constant conversations with specific companies to do with steel, including British Steel in my hon. Friend’s constituency, but of course those conversations are often commercially sensitive. I was delighted to speak at the event she hosted in Parliament to celebrate the launch of the Government’s updated steel procurement policy note, which will help to make opportunities more visible and maintain a level playing field for UK steel producers. In the financial year 2021-22, relevant public procurers bought around £365 million-worth of UK produced steel. Furthermore, the Government have provided around £730 million in energy costs relief to the sector since 2013.
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps her Department is taking to help large scale manufacturers reduce air pollution.
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps her Department is taking to help large scale manufacturers reduce air pollution.
Pollution from industrial sources in England and Wales is controlled through the Environmental Permitting Regulations 2016. All large industrial facilities, including large-scale industrial manufacturing, must comply with their environmental permits and use best available techniques (BAT) to reduce emissions to air, water and land. Through the UK BAT standard-setting process, regulators and industry collaborate to identify the most effective technologies and processes for reducing emissions. This process provides stability for industry through predictable review cycles and implementation timelines.
Through the permitting process the Environment Agency works closely with operators of large industrial sites to determine the most appropriate pollution control options for each site.
If a site is not compliant with the conditions in their permit, the Environment Agency works with the operator to agree measures to bring the site back into compliance.
Q14
.
Holly Mumby-Croft (Scunthorpe) (Con):
Conservative Governments have a proud record of supporting the UK’s steel industry. I have—[Interruption.] I do not know why Labour Members are laughing, because steel production halved under Labour. I have stood up many times in the House to talk about the importance of steel not just to my home town of Scunthorpe but to our whole nation. Does my right hon. Friend agree that we will always need steel in this country and that, if we cannot make it ourselves, we will have to ship it over from the other side of the world, with all the emissions and environmental and ethical concerns that that will inevitably bring? Will he reaffirm the Government’s commitment to taking further measures to ensure that we have sustainable, long-term steelmaking in this country?
Q14
.
Holly Mumby-Croft (Scunthorpe) (Con):
Conservative Governments have a proud record of supporting the UK’s steel industry. I have—[Interruption.] I do not know why Labour Members are laughing, because steel production halved under Labour. I have stood up many times in the House to talk about the importance of steel not just to my home town of Scunthorpe but to our whole nation. Does my right hon. Friend agree that we will always need steel in this country and that, if we cannot make it ourselves, we will have to ship it over from the other side of the world, with all the emissions and environmental and ethical concerns that that will inevitably bring? Will he reaffirm the Government’s commitment to taking further measures to ensure that we have sustainable, long-term steelmaking in this country?
I am very happy to reaffirm this Government’s commitment to steel manufacturing. I pay tribute to my hon. Friend, as I know what a champion she is for steel production in Scunthorpe. Long may she continue to be. We have made meaningful offers of support to Tata and British Steel. The Secretary of State recently visited them to see at first hand the work under way.
I thank the Secretary of State for her visit to Scunthorpe steelworks. She knows well the challenges that the steel industry is facing. While the British Industry Supercharger was a welcome announcement that I hope will go a long way to putting us on a fairer footing, I am concerned that some of that support might not be fully in place until 2025. Given current concerns, can she do anything to speed that up?
I thank the Secretary of State for her visit to Scunthorpe steelworks. She knows well the challenges that the steel industry is facing. While the British Industry Supercharger was a welcome announcement that I hope will go a long way to putting us on a fairer footing, I am concerned that some of that support might not be fully in place until 2025. Given current concerns, can she do anything to speed that up?
I thank my hon. Friend for her question and for accompanying me on my visit to British Steel last week. We are moving quickly to deliver the supercharger policy. It will reduce energy costs to energy intensive industries, including steel, by around £20 per megawatt hour. She mentioned speed, and we will consult on the capacity market exemption shortly. We intend to bring forward secondary legislation on all three measures around renewable energy obligations and capacity market costs. I will do everything I can to ensure that businesses get the support they need as quickly as they can.
What steps her Department is taking to support the steel industry.
What steps her Department is taking to support the steel industry.
We are actively engaging with the steel industry to secure a positive and sustainable future. Alongside that, my Department announced the British Industry Supercharger in February—a decisive and necessary intervention that will help to reduce energy costs for energy intensive industries such as steel.
Urgent question on negotiations between the Government and British Steel.
Urgent question on negotiations between the Government and British Steel.
Will my right hon. Friend give further detail on whether the Government think that the non-domestic energy support package will help to provide a level playing field for British steelmakers?
Will my right hon. Friend give further detail on whether the Government think that the non-domestic energy support package will help to provide a level playing field for British steelmakers?
My hon. Friend, who has done more than many others to fight for and support steel in her constituency, is right to highlight the energy bills discount scheme, but other schemes, including the one I was talking about, the energy-intensive industries scheme, where we have the consultation to take the level up to 100%, may in the end be much more meaningful. I want to assure her, Opposition Members and the whole House that the Government are very focused on this issue.
Q10
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Holly Mumby-Croft (Scunthorpe) (Con):
Conservative Governments have a proud record of supporting the UK steel industry, and I thank my right hon. Friend for the work that he has already done for steel. He will know that steel is a vital strategic industry that is essential for everything we do, from defence to growth. Will he do everything he can to ensure that we
are always able to make steel in this country, and does he agree that steel is always safest under a Conservative Government?
Q10
.
Holly Mumby-Croft (Scunthorpe) (Con):
Conservative Governments have a proud record of supporting the UK steel industry, and I thank my right hon. Friend for the work that he has already done for steel. He will know that steel is a vital strategic industry that is essential for everything we do, from defence to growth. Will he do everything he can to ensure that we
are always able to make steel in this country, and does he agree that steel is always safest under a Conservative Government?
My hon. Friend is a fantastic champion for the steel industry, and this Government remain committed to a thriving UK steel industry. That is why our support for steel includes nearly £800 million in relief for electricity costs and steel companies are eligible to bid for up to £1.5 billion in capital grant to speed their transition to net zero steel production.
I thank my right hon. Friend the Prime Minister for all the work he has done for Scunthorpe, but I give particular thanks to him for the work that he has done for steel. He has shown his understanding both of the challenges that steel faces and of its importance to this nation. He has kept every promise he has made to me on steel, and I thank him very much for his work on that. Does he agree with me that the future of steel is always safest under a Conservative Government?
I thank my right hon. Friend the Prime Minister for all the work he has done for Scunthorpe, but I give particular thanks to him for the work that he has done for steel. He has shown his understanding both of the challenges that steel faces and of its importance to this nation. He has kept every promise he has made to me on steel, and I thank him very much for his work on that. Does he agree with me that the future of steel is always safest under a Conservative Government?
Yes, and I thank my hon. Friend for everything she has done to champion UK steel, a vital national industry.
Decarbonisation and the production of green steel represent a huge opportunity for steelmakers such as British Steel in Scunthorpe. Steelmakers are raring to go, but they need further policy guidance before they invest. Can my hon. Friend reassure me that he will continue to work closely, in the excellent way that he has done, with steelmakers to ensure that they have the guidance they need to reach those goals?
Decarbonisation and the production of green steel represent a huge opportunity for steelmakers such as British Steel in Scunthorpe. Steelmakers are raring to go, but they need further policy guidance before they invest. Can my hon. Friend reassure me that he will continue to work closely, in the excellent way that he has done, with steelmakers to ensure that they have the guidance they need to reach those goals?
I can absolutely reassure my hon. Friend that we want to continue to work with British Steel, and with her—she is a champion for Scunthorpe and the surrounding communities—to ensure that it has a strong future, and to plot a pathway to treading more lightly on the earth.
What steps he is taking to support manufacturers.
What steps he is taking to support manufacturers.
Manufacturing —from the heaviest of our industries to our most modern fourth industrial revolution factory—is the bedrock of our country’s resilience, and we are committed to supporting it. This year, we will launch a new manufacturing
investment prospectus to promote the UK as the destination of choice for investment, and to signpost the support available to businesses.
My right hon. Friend will know that there is a distinct difference between the current energy price spikes and the long-standing unfairness that UK steel makers face when it comes to the charges and levies they pay on their energy costs. Does he agree that, when the energy strategy that the Prime Minister promised comes out, it must address both these distinct and separate issues?
My right hon. Friend will know that there is a distinct difference between the current energy price spikes and the long-standing unfairness that UK steel makers face when it comes to the charges and levies they pay on their energy costs. Does he agree that, when the energy strategy that the Prime Minister promised comes out, it must address both these distinct and separate issues?
I would be happy to talk to my hon. Friend about those issues. I would like to point out that we had a significant victory in extending the safeguards last summer, and there has been some very good news on trade talks about the quotas that steel companies in this country are allowed by the US.
Q12
.
Holly Mumby-Croft (Scunthorpe) (Con):
My right hon. Friend the Prime Minister is a great champion for steel, and we have just had brilliant news on the removal of the US steel tariffs. Will he reaffirm the commitment he made at the Dispatch Box on 31 January that the Chancellor will bring forward a package of measures on our steel energy costs? If the
Chancellor is not able to make good on that commitment today, will he ensure that he does so as soon as he can?
Q12
.
Holly Mumby-Croft (Scunthorpe) (Con):
My right hon. Friend the Prime Minister is a great champion for steel, and we have just had brilliant news on the removal of the US steel tariffs. Will he reaffirm the commitment he made at the Dispatch Box on 31 January that the Chancellor will bring forward a package of measures on our steel energy costs? If the
Chancellor is not able to make good on that commitment today, will he ensure that he does so as soon as he can?
I agree with my hon. Friend passionately, and I think that it is vital that we undo the damage done by the insane policies of the previous Labour Government, which whacked up the cost of energy for British industry, including steel. I will be bringing forward a British energy security strategy that will address the needs of British steel, British ceramics and the whole of British industry.
I thank my hon. Friend for work that he has done for steel. He will know that the Prime Minister himself has stood in this Chamber and spoken about the unfair historical energy costs that steel industries have faced in this country. What conversations need to take place between BEIS, the Treasury and No. 10 to bring forward a solution so that my world-class steelmakers can get on a fair footing?
I thank my hon. Friend for work that he has done for steel. He will know that the Prime Minister himself has stood in this Chamber and spoken about the unfair historical energy costs that steel industries have faced in this country. What conversations need to take place between BEIS, the Treasury and No. 10 to bring forward a solution so that my world-class steelmakers can get on a fair footing?
My hon. Friend is an absolute champion for her constituents in Scunthorpe and for the continuing success of the steel industry in that area. We continue to work very closely with our colleagues across Government to determine how we can provide support and look at options around the temporary issues that have been caused in the past year or so and then the longer-term issues. I would be happy to talk to her further.
What discussions he has had with Cabinet colleagues on the role of trade remedies in protecting the UK steel industry.
What discussions he has had with Cabinet colleagues on the role of trade remedies in protecting the UK steel industry.
My Rt hon Friend the Secretary of State for International Trade and I have discussed this on several occasions. Trade remedies are an important mechanism to protect UK industry from unfair international competition and I support her plans to review whether the UK's trade remedies framework should be strengthened.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential effect of uncompetitive electricity prices on the UK steel sector’s ability to compete internationally.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential effect of uncompetitive electricity prices on the UK steel sector’s ability to compete internationally.
The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.
The Government has put moving to a cleaner, greener economy at the heart of its Industrial Strategy, especially with our commitment to Net Zero. Our aim is to work with the steel sector and help them to reduce carbon emissions. We will continue to support the steel sector in achieving these aims through the various funds available such as the Industrial Energy Transformation Fund and Clean Steel Fund.
We estimate that reduction in the various renewable costs for eligible energy intensive industries, including steel, will save them around £400m a year in electricity costs. We have also extended the schemes to compensate certain energy intensive industries for indirect emission cost to the end of the next financial year in order to minimise disruption to existing recipients whilst we conduct a review. Between 2013 and 2019, total compensation paid to the steel sector was over £480m.
We welcome the recent report by UK Steel - “Closing the Gap” - regarding electricity prices and will give its recommendations careful consideration.