Ahead of the launch of the new Steel Strategy expected in 2025, the UK government has announced a series of significant policies and investments to support the national steel industry. Industry Minister Sarah Jones stated:
“Steel is vital to our economy. That’s why we are taking decisive action – from slashing energy prices to prioritising domestic production in public procurement.”
Major Cuts in Energy Costs and Acceleration in Grid Access
Under the Government’s Industrial Strategy, electricity costs for steel producers have been significantly reduced. Network charges will now be cut by 90% through the Supercharger scheme, up from the previous 60%. In addition, a new Connections Accelerator Service is set to go live by the end of 2025, aimed at speeding up grid access for major investment projects.
Separately, a £500 million grant has been confirmed for Tata Steel’s Port Talbot plant to support the construction of an Electric Arc Furnace, as part of a wider £1.25 billion transformation deal.
Strengthening Trade Defence Measures
The UK is strengthening its current steel safeguard measures to mitigate future surges in foreign imports. New actions will include capping certain import levels and tightening country-specific limits to ensure UK steel producers are not undercut, while maintaining a stable and reliable supply.
The government also plans to introduce new legislation expanding its powers to respond to unfair trading practices. Following the expiry of current steel safeguards in June 2026, a new call for evidence will invite steel producers, consumers, and stakeholders to help shape the future of UK steel trade policy.
Prioritising Domestic Steel in Public Procurement
A newly published Steel Public Procurement Notice requires UK-made steel to be considered in all public sector projects. Exemptions in existing buying rules will also be used to support domestic producers wherever possible. This will allow UK steelmakers to access a greater share of the £400 billion the government spends annually on procurement.
According to the 2025 infrastructure pipeline, more than 7.5 million tonnes of steel will be needed for upcoming projects. In addition, British Steel has secured a £500 million contract with Network Rail to supply over 337,000 tonnes of rail track – covering 80% of the company’s needs and supporting jobs.
New Strategy to Shape the Future of the Sector
Minister Sarah Jones stated that the Steel Strategy, due to be published later this year, will provide a clear, long-term vision for the sector. Key aims of the strategy include working with industry to define a shared ambition, guiding future investment decisions, and building a competitive business environment to attract new private investment into UK steelmaking.
“With our upcoming Steel Strategy, we are taking bold steps towards a strong and sustainable British steel industry. This sector is fundamental to securing well-paid jobs and driving local growth across the country,” she noted.
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