Unions warn tough times lie ahead for Scunthorpe Steelworks

Unions at British Steel in Scunthorpe say the site still faces major uncertainty largely due to high energy costs

Yesterday Labour Leader, Sir Kier Starmer paid them a visit promising major investment into the industry if he gets into power.

However current market conditions are still said to be very challenging at the moment.

We spoke to Paul McBean the Multi-Union chairman at the site.

We've been hit massively by electricity and energy prices

He told us: "The energy prices - they were bad enough when we first mentioned the issue and the peak that's happened in the last 2 years is devastating us."

"We can't seem to get the point across that every other European country is helping their steel industry and we're getting nothing."

"We've been hit massively by the electricity prices and energy prices."

"Not only that but we've been hit by the carbon credit prices which are a hundred million pounds a year."

"We're talking to the Government but they seem to be just sitting back."

"The owners have been willing to invest massively - they have been investing but they're willing to really ramp that up if there's an outlet for that product at a reasonable price."

"The way we can get a reasonable product at a reasonable price is being impacting by the energy prices."

The Government says they have made an offer of support to the company

We approached the Government for a response to the criticisms.

They told us:

"“Steel plays a vital role in the UK economy, supporting local jobs and economic growth.

We want to secure a decarbonised, sustainable and competitive future for the UK steel sector, and we are working closely with industry to achieve this.

“We have made an offer of support to British Steel, and continue to engage actively with the company to ensure any investment would be successful and make effective use of taxpayers’ money.”