The UK should be ‘copying China’ on its steel strategy, according to Reform UK MP Lee Anderson. In a Westminster Hall debate on steel production, Mr Anderson criticised the UK for being a ‘carbon emission Nimby’ by importing steel made in blast furnaces from other countries. He highlighted China’s success in steel production, producing as much steel annually as the rest of the world combined, and suggested that the UK should emulate China’s approach.
Reform deputy leader Richard Tice called on the Government to release its steel strategy within weeks. The strategy aims to increase steel capacity in the UK and is scheduled for publication in spring 2025. Concerns were raised during the debate about the potential closure of blast furnaces in Scunthorpe, which would leave the UK without the capacity to produce virgin steel. Following the cessation of traditional steel production in Port Talbot in September, leading to job losses, the Tata Steel plant is transitioning until 2027 when steelmaking will resume through the electric arc furnace, partly funded by a £500 million grant from the UK Government.
Mr Anderson criticised the UK for continuing to import steel made in blast furnaces from numerous countries while domestic production declines. He described this as hypocrisy and called for the UK to maintain its steel production capacity. Mr Tice expressed concerns about the possible closure of blast furnaces in Scunthorpe and stressed the importance of strategic investments to safeguard the UK’s steel industry. He also suggested that scrapping net-zero policies could lead to cheaper electricity and increased competitiveness.
Energy minister Sarah Jones emphasised the significance of the steel industry as a foundational and vital component of the economy. She acknowledged the impatience for the release of the government’s steel strategy and highlighted the need for long-term planning to ensure the UK steel industry remains competitive during global decarbonisation efforts. Ms Jones recognised China’s dominance in steel production as a significant global issue that impacts steel production profitability in the UK.
In conclusion, the debate highlighted the urgent need for a robust steel strategy in the UK to support the industry’s growth and competitiveness amid changing global dynamics. The call to learn from China’s steel production success underscores the importance of aligning national strategies with global trends to secure a sustainable future for the UK steel sector.