Scunthorpe MP Holly Mumby-Croft has told how talks between British Steel bosses and government have been constructive.
Underlining the worry and anxiety brought about by claims thousands of jobs could be at risk should a support package to tackle soaring energy bills not be secured, she said she is encouraged by what she has heard. Ms Mumby-Croft, who was elected in 2019 as part of the crashing down of the ‘Red Wall’ across northern England, has put steel campaigning at the top of her agenda while in parliament, with her work on trade safeguards welcomed.
Now the price of gas has led to the need for further intervention, with the Jingye Group company a huge user.
Ms Mumby-Croft said: “ For several weeks now I have been working closely behind the scenes with British Steel, the Government and officials in the business department to secure a deal that protects our steelworks here in Scunthorpe. The steelworks is facing a set of challenges including increased energy costs, inflation and the price of carbon.
“I come from a steel family myself and I understand this news will have caused a lot of worry and anxiety in our area. I want to reassure everyone in Scunthorpe and the surrounding area that I will keep fighting for a deal between British Steel and the Government that protects our area and our country’s proud steel-making capability. As a local lass and the granddaughter of a steelworker, I know how important this is to Scunthorpe and the surrounding areas.
“The conversations that have happened so far have been constructive and I have been encouraged by them. Everyone – the Government, British Steel, me – is working towards the same goal of keeping our steelworks going.
“The Government has shown time and again that it is willing to stand up for our steel. In addition to twice retaining safeguards and the recent business energy announcements, the Government has provided significant support to the steel industry in the past, over £780 million over the last decade, including paying workers’ wages here in Scunthorpe.
“My job is to stick up for our local area and residents can be assured that’s exactly what I’m doing. I will always fight for our steelworks with everything I’ve got!”
Reports of the need for a package to ensure Scunthorpe’s blast furnaces remain viable emerged over the weekend, and while British Steel hasn’t confirmed it is considering redundancies should measures not materialise, it is calling for a "level playing field with global competitors".
The company has declined to comment further on what measures would be required from government to make that happen, reiterating the statement released over the weekend.
It said: "We are investing hundreds of millions of pounds in our long-term future but like most other companies we are facing a significant challenge because of the economic slowdown, surging inflation and exceptionally high energy and carbon prices.
"We welcome the recent announcement by the UK government to reduce energy costs for businesses and remain in dialogue with officials to ensure we compete on a level playing field with our global competitors."
It comes almost a year to the day that British Steel outlined its pathway to Net Zero steelmaking, and almost 18 months on from the deal completing to buy it out of administration.
Energy prices - led by gas - have soared due to the Russian invasion of Ukraine putting a squeeze on supply, with much of mainland Europe dependent on Vladimir Putin’s regime. Alternative sourcing, further exacerbated by the sabotage act on the Nordstream pipeline, puts pressure on wider resources. The industry has also been campaigning for action to mitigate impact of pricing structures on energy-intensive industries since well before hostilities began. Competitive electricity prices was the first of five priorities highlighted by manufacturers' organisation UK Steel to the new government last week.
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