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

21 January 2023, 18:53

Around 35,000 people work for Britain's 1,000 steel firms
Around 35,000 people work for Britain's 1,000 steel firms. Picture: Alamy

By Adam Solomons

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

Listen to this article

Loading audio...

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'

Scunthorpe Steelworks in North Lincolnshire employs around 3,000 people
Scunthorpe Steelworks in North Lincolnshire employs around 3,000 people. Picture: Alamy

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.

Steelworks have been affected by spiralling energy costs, bosses say
Steelworks have been affected by spiralling energy costs, bosses say. Picture: Alamy

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.”

More Latest News

See more More Latest News

The Ferrari

'Reckless' Ferrari driver who hit speeds of 136mph and left three-week old baby with permanent injuries in crash jailed

Multiple incidents of dangerous driving have been caught on camera

Are these UK's worst drivers? Shocking videos show car going wrong way on motorway among moments of madness

Margo Neas holds her cat Mittens at her home in Melbourne, Australia

Mittens the cat becomes accidental jetsetter after being forgotten on a plane by mistake

Russian spy ship Yantar has been forced out of British waters

Russian spy ship forced out of British waters by Royal Navy sub

Flowers at the scene near Scribers Lane in the Hall Green area where the 12-year-old boy died

Boy, 12, stabbed to death walking home from school died from knife wound to stomach - as passer-by tried to save him

Met Issues Weather Warning For Parts Of England

Met Office issues amber weather warning, with 'potential risk to life'

The British boy, originally from Oldham, was 11 years old when he went missing while travelling with his family in Marbella, Spain, in October 2017.

Alex Batty’s mum & granddad won't face criminal charges after keeping Brit teen in commune for six years

Humanitarian aid trucks enter through the Kerem Shalom crossing from Egypt into the Gaza Strip, as a ceasefire deal between Israel and Hamas went into effect, in Rafah, Tuesday, Jan. 21, 2025. (AP Photo/Jehad Alshrafi)

Israel confirms control of Rafah border crossing into Gaza during first phase of ceasefire deal

Dame Judi Dench.

Dame Judi Dench, 90, reveals she 'can't leave her house alone' due to sight loss

Company run by Captain Tom's daughter collapses with just £149 in assets - despite last year's figure totalling £336,300

Captain Tom’s fundraising website taken down just hours after daughter’s business collapses

Scribers Lane, Birmingham.

Tribute paid to 'beautiful' child, 12, stabbed to death in school shortcut

Crossbow killer Kyle Clifford pleads guilty to murdering wife of racing commentator John Hunt and two daughters

Crossbow killer Kyle Clifford pleads guilty to murdering wife of racing commentator John Hunt and two daughters

Prince Harry has received an apology and 'substantial' damages (file image)

Prince Harry awarded 'substantial' damages as he settles privacy lawsuit against publishers of The Sun

Ian Airlie, 48, was found dead at his home in Greenwich on October 10

London man, 48, found dead at home a month after being pushed down escalator at Waterloo station

A wood-burning stove.

Chimney sweeps asked to park away from customer homes, due to wood-burning stove embarrassment

Ulbricht was sentenced to life in prison after being found guilty in a 2015 narcotics and money laundering trial.

Donald Trump pardons creator of dark web drug marketplace Silk Road