Steel Sector Strategy: Securing Jobs and Economic Growth Amid Global Challenges
On April 8, 2025, the UK government convened the second meeting of the Steel Council, a high-level platform bringing together industry leaders, union representatives, and trade bodies to discuss the future of the UK steel sector. This meeting reinforced the government’s commitment to safeguarding British steelmaking and its pivotal role in the nation’s industrial growth.
Reaffirming Commitment to Steelmaking
Industry Minister Sarah Jones led the meeting, which followed the closure of the government's consultation on its steel plan green paper, which garnered almost 100 responses from business leaders and experts. Jones highlighted that the UK’s steel industry, integral to the economy and national security, is facing serious challenges, from U.S. tariffs on steel and aluminium to rising global energy prices. However, the government is unwavering in its commitment to ensuring that British-made steel remains competitive in the global market.
"We know this is a concerning time for our steel industry in the face of global challenges," said Minister Sarah Jones. "That’s why we’re working in lockstep with industry to drive forward our steel plan so it can help the sector secure jobs, deliver growth, and power the modern economy. This government will always stand up for UK steelmaking, and we’re placing it at the heart of our growth mission."
Energy Relief: Key Part of Government’s Strategy
A significant part of the government’s plan to support British steel is the introduction of the Network Charging Compensation (NCC) scheme. This measure is designed to reduce the energy costs for steel and other energy-intensive industries, ensuring that the UK’s steel sector can remain competitive with global counterparts.
In 2025, the government’s energy relief package is expected to provide over £300 million in support, which includes the NCC scheme and additional energy price reductions under the British Industry Supercharger program. This is expected to help steel companies compete effectively with other major economies whose energy costs are lower.
“The implementation of the NCC scheme is a vital part of our strategy to help steel companies overcome energy price disparities. By aligning UK energy prices with global standards, we are ensuring that our steel industry can thrive and remain competitive,” said Minister Jones.
The first payments to businesses under the NCC scheme will be made in May 2025, with over £15 million expected to reach steel companies. As the scheme fully rolls out, it is expected to provide between £320 million and £410 million in reduced electricity prices in 2025 alone. Over the next decade, the energy cost savings could total more than £5 billion.
Government's Plan for Change and Steel Consultation
The UK government has worked closely with the steel industry to design the Steel Plan for Change, which focuses on long-term sustainability and job security. The consultation on this plan closed on March 30, 2025, and nearly 100 responses were reviewed from steel sector companies, trade unions, and industry experts.
The consultation focused on several key aspects of the steel sector’s future, including energy efficiency, environmental sustainability, and investment in modern technologies. A key part of the government’s strategy is ensuring that steel manufacturing remains a cornerstone of the UK economy while reducing carbon emissions and increasing productivity.
"With our steel plan, we’re prioritizing the future of UK steel. It’s about delivering sustainable growth, securing the long-term future of the industry, and ensuring that jobs across the sector are protected and created," explained Sarah Jones.
Global Tariff Impact and Trade Relations
The Steel Council meeting also addressed the growing concerns about international tariffs, especially those imposed by the United States on steel and aluminium imports. These tariffs have impacted UK steel exports, and discussions during the meeting centered around how the UK government could best respond to these global trade dynamics.
While global tariffs on steel have created uncertainty in the sector, UK steelmakers are receiving government support in several areas, including trade defense measures and negotiations with the European Union to mitigate the impact of the tariffs. The government is working to strengthen the UK's steel industry in light of these global challenges, which include unfair trade practices from other countries and trade barriers.
“Steel and aluminium tariffs imposed by the U.S. are a serious issue for our industry, but we are confident that the UK government’s ongoing diplomatic efforts and trade policy will continue to support the sector,” said Paul Williams, CEO of Tata Steel UK, one of the key industry participants in the meeting.
Industry Leaders: A Unified Approach to Revitalizing Steel
The Steel Council’s second meeting saw participation from some of the largest players in the UK steel sector, including Tata Steel, Liberty Steel, British Steel, and other industry leaders. Trade unions and associations like UK Steel were also represented, ensuring a comprehensive dialogue about the sector's future.
The government’s commitment to working hand-in-hand with the steel industry was clear. By collaborating with unions, companies, and industry associations, the government aims to create a blueprint for a sustainable and competitive steel sector.
“We’re here to make sure the UK’s steel industry continues to be a global leader. By modernizing and supporting our steelmakers, we’re not just protecting jobs — we’re investing in the future of the economy,” said Gareth Stace, Director General of UK Steel, who attended the meeting.
The Path Ahead: A Vision for Modernization
The UK government’s Steel Plan for Change emphasizes modernization as a central component of the sector’s long-term growth. Plans to modernize steel production facilities, improve energy efficiency, and invest in new green technologies will ensure that the UK steel industry stays ahead of international competitors.
The government has allocated resources for research and development aimed at reducing the carbon footprint of steel production, making the industry more sustainable and helping the UK meet its climate goals. The focus on modernizing the UK steel sector aligns with the broader goal of building a green, resilient, and innovative economy.
Key Takeaways:
• Second Steel Council Meeting: The UK government reaffirmed its commitment to British steelmaking with the second Steel Council meeting, focusing on securing jobs and driving forward the Steel Plan for Change.
• Energy Cost Relief: Over £300 million in energy cost relief will be provided to steel companies in 2025, with the government’s Network Charging Compensation (NCC) scheme expected to significantly reduce energy costs for steelmakers.
• Global Tariff Concerns: UK steelmakers face challenges from global tariffs, particularly U.S. tariffs on steel and aluminium, but the government is committed to protecting UK trade interests.
• Consultation Responses: Nearly 100 responses to the government’s Steel Plan for Change consultation will help shape the future of UK steelmaking, with a focus on energy efficiency, sustainability, and job creation.
• Strategic Support: The UK government is working alongside industry leaders, unions, and trade bodies to create a sustainable future for steel in the UK, emphasizing modernization and the green economy.
• Long-term Vision: The government’s steel plan includes investments in cleaner technologies and more energy-efficient production methods, aiming to modernize the UK steel sector and align it with environmental goals.
• Economic Growth and Jobs: The UK government’s strategy is designed to safeguard jobs and create new employment opportunities, ensuring that the steel sector remains a vital part of the UK’s economic future.
• Collaborative Approach: The government’s collaborative approach with industry leaders, trade unions, and associations ensures that the Steel Plan for Change will be comprehensive and well-supported across all sectors.
