CashNews.co
The Government should be “copying China” on its steel strategy, Reform UK MP Lee Anderson has said.
In a Westminster Hall debate on steel production, Mr Anderson also said the UK is a “carbon emission Nimby” (not in my back yard) by importing steel made in blast furnaces from other countries.
Reform deputy leader Richard Tice urged the Government to publish its steel strategy in “a matter of weeks”.
The strategy will look at how it can increase steel capacity in the UK and is set to be published in spring 2025.
Mr Anderson said China, which annually produces as much steel as the rest of the world combined, “seem to have got it right”.
He told MPs: “China’s getting it right, they’re world leaders in renewables but they’re also making steel from blast furnaces.
“I think China’s right, we should be actually copying China with this so-called steel strategy, they seem to have got it right.”
During the debate on Wednesday a number of MPs expressed concern about the potential closure of blast furnaces at Scunthorpe that would leave the UK with no ability to produce virgin steel.
This comes after traditional steel production ceased in Port Talbot in September, with thousands of workers losing their jobs.
The Tata Steel plant is set to enter a transition phase until 2027 when steelmaking will resume through the electric arc furnace, part-funded by a £500 million grant from the UK Government.
Nearly 2,000 jobs will be lost as a result of the transition. The Government has said around 500 jobs are expected to be available during the construction of the electric arc furnace.
The MP for Ashfield described the UK as carbon emission “Nimbys”, due to imports of steel continuing as domestic production decreases.
Mr Anderson said: “We’re quite happy to import steel and products made from steel, from 60 or 70 countries around the world, that have been made with blast furnaces – but we’re saying we can’t do it here.
“I think that’s hypocrisy of the highest level.”
Speaking before his Westminster Hall debate on the steel industry, Mr Tice said the UK should not depend on the “whims of overseas manufacturers” and British steel should continue to be produced.
He told the PA news agency: “People of the establishment talk about us being world-leading – naive stupidity is the only thing we’re going to be world-leading in.”
During the debate, Mr Tice said there needs to be a “strategic stake” taken in British steel to guarantee that the blast furnaces in Scunthorpe will not close.
He said: “We cannot run that risk. Because otherwise if the electric arc furnaces are not built – we’ve got nothing.”
Mr Tice added: “I accept that this is not going to happen, but frankly, if you want cheaper electricity, you want to make us more competitive, the fastest way to do it is to scrap net-zero.
“That will bring down prices.”
Concluding, Mr Tice said the Government not protecting the steel industry is “negligent, frankly to the point of criminality”.
Energy minister Sarah Jones said steel is a “foundational industry” and a “vital component” to the economy.
“That’s why we also need our own steel strategy to determine the best steps forward to rebuild this hugely important industry,” she said.
“We need to lay out long-term plans so that the UK steel industry is not left behind as the world decarbonises.”
Ms Jones added that she “hears the House’s impatience for that strategy”, but that given the Government’s investment of £2.5 billion “it is right that we talk to the experts”.
On China, the Energy minister said the country’s dominance of steel “is a huge issue and we shouldn’t underplay that”.
She said: “China is now the biggest steel producer in the world and their unfair subsidies have led to massive steel overproduction which fuels global overcapacity, and drive down prices.
“And that’s a global issue with local consequences here in the UK, it makes profitable steel production here in the UK much harder, and this a key global situation that is helping shape our future steel strategy.”