Millions of tonnes of steel will be needed for the newly announced Infrastructure Strategy investments in new nuclear capacity, regional transport, schools and prisons. The detailed outline of developments, to the tune of billions of pounds, are welcome news for the steel industry, with £14.2bn investment announced for Sizewell C alone.
The Chancellor, Rachel Reeves, stated last week in her Spending Review speech that these projects should be made using UK-made steel. These infrastructure announcements, and the government’s confidence in the UK steel sector’s production, offer a level of business clarity over the government’s long-term public procurement plans and how steel companies can support these ambitions and grow their own production.
A new Infrastructure Pipeline, to be published before recess, provides steelmakers with an opportunity to identify project opportunities and demonstrate their capacity and capability to supply into our public procurement needs. However, ongoing market confidence for steel companies will be cemented with truly competitive electricity prices, strategic domestic public procurement and reinforced trade defences.
UK Steel Director-General, Gareth Stace, said: “Where public money is involved, British contracts should buy from British steel firms, boosting thousands of jobs and supply chains across the UK. The Infrastructure Strategy and forthcoming pipeline means the steel industry can take full advantage of these opportunities.
“UK steelmakers are holding up their end of the bargain, working closely with the Government on reforms to the Policy Procurement Note for Steel and a digital steel catalogue to ensure procurement teams know what steel we make and where.
“To secure the success of our steel companies and the Government’s ambitions, the infrastructure plans must go hand-in-hand with competitive electricity prices, strategic domestic procurement and a new trade defence mechanism in 2026 to handle the influx of imported, high-emission steel.”
Commenting on the Infrastructure Strategy, Rachel Reeves said: “Infrastructure is crucial to unlocking growth across the country, but for too long investment has been squeezed. Crumbling public buildings are a sign of the decay that has seeped into our everyday lives because of a total failure to plan and invest.
“We’re not just fixing buildings – we’re enhancing public services, improving lives and creating the conditions for sustainable economic growth in communities throughout the UK. This will deliver the decade of national renewal we promised Britain, and fulfil our Plan for Change goals to kickstart economic growth, and build an NHS fit for the future.”
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