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

Trump smiles from the White House on "Liberation Day."

'Liberation Day' explained: What are Trump's tariffs and how will they impact the UK?

The blurry thieves stole £3,000 worth of cigarettes and vapes.

Police release CCTV after thieves steal £3,000 of vapes - but images leave the public calling for 'the ghostbusters'

Julie Goodyear

Julie Goodyear's husband shares rare photo of Coronation Street star two years on from dementia diagnosis

: An aerial view shows the scorched graveyard around a church following a large blaze the previous day, on July 20, 2022 in Wennington, Greater London

Londoners urged not to have barbecues this weekend amid soaring temperatures 'because of wildfire risk'

Lord Sugar labels Trump tariffs 'a disaster' as Apprentice star teases potential US Presidential meeting

Lord Sugar labels Trump tariffs 'a disaster' - as Apprentice star teases potential US Presidential meeting

Mother and two children struck and killed by a vehicle in Brooklyn, New York: driver operating suspended license

Husband left 'utterly bereft' after Brit mum and two daughters killed in New York car crash

The Nintendo Switch 2 will release on June 5, 2025

Nintendo Switch 2: Exciting reveal, but why is it more expensive here?

BRITAIN-FUNERAL-POLICE

Funeral director charged with 64 offences including fraud, theft and preventing 30 lawful burials

swallow-tail

Brits urged to 'stop mowing lawns' amid 'national butterfly crisis' with more than half of species in decline

Kyle Kitchen, 38, murdered eight-week-old Primose Kane

Dad who murdered daughter by violently shaking her as baby is jailed for life

Buildings that were destroyed during the Israeli ground and air operations in Gaza

Israel expands ground attack on Gaza to seize 'large areas' - despite pleas from hostage families

Douglas Clifton Brown, 56, tried to kill his estranged wife

Old Etonian who tried to murder his estranged partner by throwing her down a 240ft well is jailed for 24 years

Kaliyah Coa, 11, was reportedly down at the water when she was 'swept away'

Pictured: Missing 11-year-old 'swept away' while paddling in the River Thames

Hot cross buns could be scarce this Easter as farmers continue to protest against Rachel Reeves' 'tractor tax'.

Hot cross bun shortage looms as farmers escalate 'tractor tax' protests

Tanesha Melbourne-Blake was shot

Teenage girl shot dead during gang 'ride-out' following social media humiliation

Mother and two children struck and killed by a vehicle in Brooklyn, New York: driver operating suspended license

Brit mum and daughters, eight and five, killed in crash by driver who said 'I have the devil in me'