The UK Government has introduced a new Steel Council, aimed at guiding the development of a Steel Strategy with the backing of up to £2.5 billion in investment. The Council will bring together industry leaders, government representatives, and trade unions to help shape the future of the UK steel sector.
Business Secretary Jonathan Reynolds will chair the first meeting of the Steel Council, which includes Jon Bolton, Chairman of the Materials Processing Institute, as co-chair. Reynolds emphasized the importance of a robust steel sector for both economic growth and national security, stating that the strategy will help ensure long-term stability and competitiveness.
Jon Bolton expressed optimism about the potential for investment in the UK steel industry, citing the country’s strong demand, skilled workforce, technological capabilities, and government support as key drivers for success. He called for a comprehensive strategy that incorporates these elements to rejuvenate the industry and foster a more sustainable future.
UK Steel, a trade organization, noted that the industry faces significant challenges, including rising imports, market share loss, and global competition. However, the creation of the Steel Strategy and the Steel Council provides hope for revitalization, with the government’s new commitment signaling a shift towards a more supportive environment for steelmakers.
The Steel Strategy aims to provide a competitive framework for UK steel, with proposals to reduce electricity costs, create fair trade policies, improve public procurement, establish carbon border adjustments, enhance access to raw materials, and invest in innovation. Collaboration across key government departments will be essential to delivering the strategy’s goals.
The Steel Council, launched on January 7, 2025, will play a vital role in advising the government on the strategy and overseeing the distribution of the £2.5 billion National Wealth Fund, which will support innovation and competitiveness in the industry.
Gareth Stace, Director-General of UK Steel, welcomed the establishment of the Council, calling it a pivotal moment for the future of the UK steel sector. He emphasized the opportunity to foster long-term investment and ensure steelmaking remains integral to the UK economy.
The Steel Council’s members include key industry figures, government representatives, and trade unions, with notable participants from British Steel, Tata Steel, Liberty Steel, Celsa Steel, and other major players in the sector.
The UK steel industry plays a significant role in the economy, producing 5.6 million tonnes of crude steel annually, supporting 33,700 direct jobs, and contributing £1.8 billion to the UK’s Gross Value Added (GVA). With the support of the new Steel Strategy, the sector is poised for a more competitive and sustainable future.
