British steel industry 'at breaking point' with 35,000 jobs at risk, unions say

21 January 2023, 18:53

Around 35,000 jobs in British steel are at risk as the industry is 'a whisker away' from collapse, unions said.

A letter to the government from Unite, Community and GMB unions said Business Secretary Grant Shapps had taken "little meaningful action" to aid the sector amid spiralling energy costs.

It leaves the sector "at breaking point" and "a whisker away from collapse", Unite's assistant general secretary Steve Turner wrote.

Turner said the steel industry's current predicament was driven by "crippling energy costs, carbon taxes, lost markets, lower demand, and open market access for imported steel."

He wrote: "Endless sticking plaster solutions from the Conservatives have left our UK steel sector on the brink.

"Instead of finding a long-term solution, successive Conservative governments have lurched from crisis and bailouts with no plan to keep UK steel internationally competitive or deliver a return on taxpayers investment."

Read more: Deputy Prime Minister Dominic Raab defends Rishi Sunak after PM slapped with fine for not wearing seatbelt

Read more: Zahawi brushes off calls to resign over 'million pound tax fine', claiming his error was 'careless, not deliberate'

The UK's entire steel sector is made up of around 1,000 firms which employ up to 35,000 people.

Chancellor Jeremy Hunt is set to approve a £300 million bailout for Britain second biggest steelmaker British Steel, which alone employs 4,000 people.

The package would cut the firm's carbon footprint and protect its current workforce, Sky News reported.

Treasury sources said it will also replace the company’s blastfurnaces at its Scunthorpe site in Scunthorpe with greener electric arc furnaces.

But the deal is conditional on the firm's Chinese owner Jingye agreeing to invest in greener technology, the BBC reported.

A spokesperson for the Department for Business, Energy and Industrial Strategy said last week: “The government recognises the vital role that steel plays within the UK economy, supporting local jobs and economic growth, and is committed to securing a sustainable and competitive future for the UK steel sector.

“While we cannot comment on ongoing negotiations, the business secretary considers the success of the steel sector a priority and continues to work closely with industry to achieve this.”