REFORM UKs Richard Tice writes to Jonathan Reynolds: "Catastrophe faces our UK steel industry"
October 17th, 2024
Reform UKs Richard Tice has written to Secretary of State for Business and Trade, Jonathan Reynolds, about the catastrophic state of our steel industry.
Richard Tice posted to X:
CATASTROPHE FACES OUR UK STEEL INDUSTRY
My 5 point plan to save it after my Westminster Hall debate yesterday
Richard Tice's letter to Jonathan Reynolds in full:
RICHARD TICE MP
HOUSE OF COMMONS
Rt Hon Jonathan Reynolds MP
Secretary of State for Business and Trade
President of the Board of Trade
Old Admiralty Building
Admiralty Place
London
SW1A 2DY
LONDON SWIA OAA
Thursday 17th October 2024
Dear Secretary of State,
Yesterday, I led a Westminster Hall debate on the Steel Industry in the UK. I highlighted my genuine concern that following the recent closure of the blast furnaces in Port Talbot, it is very possible that the blast furnaces at British Steel in Scunthorpe will close over the next 6-12 months. This would mean the UK would have no general steelmaking capacity in the UK. This is simply unacceptable.
I fear that the proposed electric arc furnaces will be either be delayed for many years, or never be built. To be viable, they need lots of competitively priced electricity; you admitted to me in the Commons a few weeks ago that the UK has a problem with its high electricity prices. The UK electricity price is the most expensive in the developed world and makes us very uncompetitive. In addition it is reported that National Grid cannot provide sufficient electricity supply to Scunthorpe for over 5 years, meaning any new arc furnaces could not operate until then.
The Government's whole industrial, energy and steel strategy is predicated on more renewable electricity and a belief that electricity prices will reduce. You know my concern that Net Zero is the wrong response to climate change and that it will lead to higher, not lower bills. If I am right, the Government's whole strategy will lie in tatters. Voters and workers will be rightly very upset, and feel badly misled.
I highlighted that our steel industry potentially faces catastrophe if the blast furnaces at Scunthorpe are allowed to close, due to the risk of the electric arc furnaces never being built. Steel is a strategically important industry, with a critical need to produce primary steel, that is only done fully with blast furnaces. The steel industry is vital to the Port Talbot and Scunthorpe communities and they must not be let down. This would be negligent.
My 5 point plan outlined in the debate, to save what is left of the steel industry, is that the Government:
1) Must accelerate its steel strategy to release it before Christmas. Next Spring is too late
2) Must guarantee that Scunthorpe blast furnaces remain operational, probably with the Government taking a strategic stake in British Steel
3) Must scrap all current and proposed carbon taxes
4) Must stop Chinese steel dumping with substantial tariffs on imported steel as others are doing like US - instead
the Government has just reduced some specific tariffs which makes our situation worse
5) Must ensure UK public sector projects buy British manufactured steel as matter of course. For example I understand that no British steel is used in the construction of wind turbines for the UK
This plan is achievable and the Government would secure substantial cross party support if it carried it out, as well as the gratitude of many millions of voters.
As you know, we at Reform would also scrap Net Zero completely, to enable cheaper electricity and energy bills, to create much faster economic growth. We know the Government will not do this of course, but we will keep reminding you.
Yours sincerely
Richard Tice
MP for Boston and Skegness
MEMBER OF PARLIAMENT FOR BOSTON AND SKEGNESS
EMAIL: RICHARD.TICE.MP@PARLIAMENT.UK
https://twitter.com/TiceRichard/status/1846924478443356578
