Steel Sector Revival: Strategic Government Actions to Ensure Job Security and Growth
On April 8, 2025, the UK government hosted the second meeting of the Steel Council, convening leaders from across the steel industry, trade unions, and government departments to discuss the future of British steelmaking. The focus of the meeting was on securing jobs, ensuring the sector’s long-term growth, and addressing the challenges faced by the UK steel industry, particularly in light of global economic conditions, energy costs, and tariffs imposed by the United States.
A Unified Approach: Steel Sector and Government Collaboration
Industry Minister Sarah Jones, who hosted the meeting, emphasized that the government remains firmly committed to British steelmaking and its critical role in the UK economy. With rising global energy prices and trade barriers like the U.S. tariffs on steel and aluminium, the government’s strategy is focused on both protecting the existing workforce and enabling future growth within the sector.
“We know this is a concerning time for our steel industry in the face of global challenges. 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,” said Minister Sarah Jones.
The government’s steel plan is comprehensive and is designed to modernize the sector, reduce carbon emissions, and increase its competitiveness globally. The meeting also came after the closure of the steel plan consultation, which received nearly 100 responses from industry leaders, trade unions, and experts, providing valuable feedback on how the government can further support the sector.
Energy Cost Relief: A Vital Pillar of the Plan
A major component of the government’s plan is reducing energy costs for steel companies, which are among the most energy-intensive industries. Under the British Industry Supercharger package, which includes the newly implemented Network Charging Compensation (NCC) scheme, the government will provide over £300 million in energy cost relief for businesses in 2025 alone.
The NCC scheme is designed to reduce the energy prices for energy-intensive industries like steel, aligning UK electricity costs with those in other major economies. The first payments under the NCC scheme are expected to be made in May 2025, with more than £15 million in energy relief to be distributed in the first month alone. Over the next year, the total energy relief for the steel sector will range between £320 million and £410 million, with potential savings exceeding £5 billion over the next decade.
This support is crucial as high energy prices have been a barrier to the competitiveness of UK steel, and these measures will help mitigate that disadvantage.
Global Tariffs and Trade Relations: A Focus on National Interests
The second meeting of the Steel Council also discussed the ongoing concerns about global tariffs, especially the tariffs imposed by the United States on steel and aluminium imports. These tariffs have disrupted trade and raised concerns for UK steel manufacturers who export to the U.S. market. The UK government is actively working on trade defense measures and strengthening its trade relationships with global partners to mitigate the impact of these tariffs.
In addition, discussions centered on the need for long-term strategic measures to protect the steel sector from unfair trade practices globally. Minister Sarah Jones reiterated that the UK government would continue to stand up for British steel and work with international allies to ensure that the UK’s steel industry can compete fairly on the global stage.
A Sustainable Future: Modernization and Technological Innovation
Beyond short-term relief measures, the government’s Steel Plan for Change emphasizes the need for long-term transformation within the sector. Modernizing steel production facilities, implementing green technologies, and improving energy efficiency are central goals of the strategy. The government is investing in research and development to reduce the carbon footprint of steelmaking, positioning the sector as a leader in sustainable manufacturing.
The government’s vision includes transitioning to low-carbon steel production, which would reduce emissions in line with the UK’s broader environmental goals. This modernization will not only ensure the industry’s sustainability but also help attract new investment into the sector, creating jobs and economic opportunities in the long term.
Consultation Responses: Shaping the Future of Steel
The government’s consultation on the Steel Plan for Change closed on March 30, 2025, and over 100 responses were received from stakeholders. These responses provide critical input on how the sector can be supported in the face of challenges such as global competition, environmental regulations, and technological advancements. The consultation process will help shape the next steps in the government's plan to create a more resilient and competitive steel industry.
Collaboration with Industry Leaders and Trade Unions
The UK government’s approach to revitalizing the steel sector is centered on collaboration with industry leaders, trade unions, and associations. CEOs of major steel companies, including Tata Steel, Liberty Steel, and British Steel, along with representatives from trade unions like the GMB and Community Union, attended the Steel Council meeting. Their feedback, along with contributions from organizations like UK Steel, was integral in shaping the discussions on the steel sector’s future.
“This collaborative approach ensures that all stakeholders have a voice in shaping the policies that will govern the future of steel in the UK,” said Gareth Stace, Director General of UK Steel. “The government’s commitment to working closely with the industry and unions will help ensure that we have a sustainable and competitive steel sector for years to come.”
Path Forward: Investing in Green and Sustainable Steel
The UK government is focusing on making the steel industry a model of sustainability by investing in new technologies that reduce emissions and improve energy efficiency. This includes the development of greener steel production techniques, such as hydrogen-based steelmaking, which has the potential to significantly reduce the sector’s carbon footprint.
The government’s long-term investment in steel will help the sector meet its environmental goals while remaining a key driver of economic growth. By prioritizing sustainable practices, the UK steel sector will be able to compete globally while contributing to the UK’s commitment to achieving net-zero emissions by 2050.
Key Takeaways:
• Steel Council Meeting: The UK government reinforced its commitment to the steel sector, highlighting job security and economic growth at the second Steel Council meeting.
• Energy Cost Relief: The government’s energy relief initiatives, including the Network Charging Compensation (NCC) scheme, are expected to provide over £300 million in relief to steel companies in 2025 alone.
• Global Tariffs: The UK government is actively working on trade defense measures to counteract the impact of U.S. tariffs on steel and aluminium imports.
• Sustainable Steel: Modernization and investment in green technologies are key parts of the government’s strategy to create a more sustainable and competitive steel industry.
• Consultation Process: Nearly 100 responses to the Steel Plan for Change consultation will shape future government policies aimed at supporting UK steelmakers.
• Collaborative Approach: The government is working closely with steel industry leaders, unions, and trade associations to ensure a comprehensive and sustainable strategy for steel’s future.
• Long-term Investment: The UK government’s focus on low-carbon technologies and energy efficiency is set to transform the steel sector into a global leader in sustainable manufacturing.
• Job Creation and Growth: Government strategies aim to protect existing jobs and create new employment opportunities, ensuring the steel sector remains vital to the UK economy.
• International Competitiveness: The government’s support ensures that British steel can remain competitive on the global market, despite challenges like high energy costs and international trade barriers.
