Government urged to protect steel industry in Scunthorpe

MP Holly Mumby-Croft has asked an urgent question in the Commons

Author: Jaimielee RendallPublished 8th Nov 2023

The government's being urged to guarantee steel can continue to be made in the UK after British Steel's proposals to close blast furnaces at its Scunthorpe plant.

Unions fear up to 2,000 jobs could be lost over plans to replace blast furnaces with two electric arc versions which can run on zero-carbon electricity.

That's if it gets "appropriate support from the UK Government".

Conservative MP Holly Mumby-Croft (Scunthorpe), asking an urgent question, told the Commons: "I stand absolutely unapologetically with steelmakers and my community today, and I do not support these moves."

Ms Mumby-Croft said she previously received assurances from the Government over the need for the UK to retain a virgin steel capability for strategic reasons.

She added: "British Steel is a private company and they can make business decisions as they see fit, but I am clear if they are seeking hundreds of millions of pounds of public money then the Government must leverage this money to protect steelworkers' jobs and maintain our sovereign capability to make steel in the UK.

"Electric arc furnaces melt scrap. To make virgin steel from scratch, we need blast furnaces. Can she tell the House how the UK will make virgin steel if all our blast furnaces are decommissioned? Can she tell us how many countries in the G20 are unable to make their own virgin steel?

"Would the Government be comfortable with us being entirely dependent on foreign imports for the virgin steel we will continue to need in this country?"

Business minister Nus Ghani responded by claiming many things would "have to fall into place" for British Steel's proposals to become "accurate plans".

Ms Ghani told the Commons: "(Ms Mumby-Croft) is absolutely right, I did indeed say at the despatch box that I fundamentally believe that my personal opinion is that there's a strong place for virgin steel production in this country, and that, of course, is in her constituency."

Ms Ghani said the Government is "in the middle of very live negotiations" and it is a "commercial decision" for British Steel, adding: "Our primary focus is to safeguard the sector and safeguard jobs, including in her constituency."

The minister added: "When the press release was put out by British Steel it was the time that I saw that press release as well, but we must recognise this is a proposal - many things have to fall into place for these proposals to become accurate plans, not only issues around planning, but also for our negotiations to conclude as well."

She later compared the negotiations with discussions that were had with Tata over steel production at Port Talbot, which had taken place for "several years, even decades", adding: "This won't take that long."

Shadow business secretary Jonathan Reynolds said Labour supports the transition to green steel, adding: "We believe electric arc furnaces are part of the solution, but we do not believe they can be the only solution.

"Specifically, we believe the retention of primary - or virgin - steelmaking in the United Kingdom is a matter of economic necessity and of national security."

Conservative former minister Sir Edward Leigh also raised concerns about national security, telling the Commons: "There is no other major developed country in the world who is giving up their traditional blast furnaces, the only way you can make virgin steel."

Martin Vickers, the Tory MP for Cleethorpes, said he was concerned about the impact of job losses in Scunthorpe, which neighbours his constituency.

Mr Vickers told MPs: "Having witnessed in my own community in the Grimsby-Cleethorpes area, the decline of the fishing industry, it rips the core out of the community and needs generations of support. What plans will the Government put in place to ensure that happens?"

Hear all the latest news from across the UK on the hour, every hour, on Greatest Hits Radio on DAB, smartspeaker, at greatesthitsradio.co.uk, and on the Rayo app.