London Daily

Focus on the big picture.
Thursday, Jul 02, 2026

UK steel industry a whisker away from collapse - Unite

UK steel industry a whisker away from collapse - Unite

The UK steel industry, which supports thousands of jobs, is "a whisker away from collapse", the Unite union says.
It has written a letter to Business Secretary Grant Shapps seeking an urgent meeting to push for more support.

Unite has accused the government of taking "little meaningful action" to help the industry, leaving the sector "at breaking point".

The government said the success of the steel industry is a priority.

In the letter, Steve Turner, Unite's assistant general secretary, said there were a number of issues causing the industry problems.

These included "crippling energy costs, carbon taxes, lost markets, lower demand, and open market access for imported steel".

Writing to Mr Shapps on behalf of two other unions as well - Community and GMB - Mr Turner said the challenges faced by manufacturers like British Steel, Tata Steel, and Liberty Steel were the consequences of "direct actions by your government that have... significantly undermined UK plant competitiveness in global markets".

"With little meaningful action on the part of government in areas of UK procurement policy, energy pricing support, green energy generation or support for investment in new plant and technologies, the industry is at breaking point," Mr Turner added.

"We are, in the words of many, 'a whisker away from collapse'".

He said UK steel "employs tens of thousands of skilled workers and hundreds of apprentices", and asked for an urgent meeting to discuss "current and future government policy" to support the sector.

It has been reported that the Chancellor Jeremy Hunt is poised to grant a £300m funding package for British Steel.

The money has not been confirmed by the Treasury, but the BBC understands it would depend on the firm's Chinese owners, Jingye, investing in greener technology.

Responding to the letter, a spokesperson for the Department for Business, Energy and Industrial Strategy said the government recognised "the vital role that steel plays within the UK economy, supporting local jobs and economic growth".

It said it was "committed to securing a sustainable and competitive future for the UK steel sector," adding that Mr Shapps "considers the success of the steel sector a priority and continues to work closely with industry to achieve this".

Commenting on the proposed funding package for British Steel, Labour's Shadow Business Secretary, Jonathan Reynolds, said the UK steel sector has been left "on the brink" as a result of the government's failure to come up with long-term solutions.

"Endless sticking plaster solutions from the Conservatives have left our UK steel sector on the brink," said Mr Reynolds.

"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."
Newsletter

Related Articles

0:00
0:00
Close
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
UK and China Hold Industrial Strategy Talks on Trade and Export Growth Opportunities
UK Defence Funding Gap Widens as £4.7 Billion Shortfall Puts Pressure on Spending Priorities
United Kingdom Faces Historic Demographic Shift as Deaths Forecast to Exceed Births in England and Wales
United Kingdom Introduces Major Motability Scheme Reforms Targeting £1 Billion in Long-Term Savings
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
Telegraph Media Group Takeover by German-Led Consortium Completed
Resident Doctors in England Accept Government Pay and Conditions Deal
Andy Burnham Sets Out Ten-Year Economic Vision Amid Labour Leadership Debate
Asylum Seekers in UK Face £10,000 Contribution Requirement Under New Law
UK Government Moves to Break Apple and Google App Store Dominance
New UK Steel Tariffs and Import Quotas Aim to Shield Domestic Industry
Damning Report Exposes Failures in Maternity and Neonatal Care Across England
Government Data Reveals Five Billion Pound Shortfall in UK Defence Budget
Prime Minister Keir Starmer Unveils Three Hundred Billion Pound Defence Investment Plan
UK Crime and Policing Act 2026 Comes into Force with New Justice System Reforms
UK Prime Minister Hosts NATO Secretary General Mark Rutte for Security Talks at Downing Street
UK Tightens Oversight of Emissions Trading Scheme Through New Ministerial Directions
UK Issues Statement at UN Security Council on Violence in the West Bank
UK Environment Agency Clears Illegal Waste Site in West Yorkshire After Court Action
UK Resident Sentenced for Fraudulently Claiming £30,000 in Covid Business Loans
UK Launches Taskforce to Help Young People Claim Dormant Child Trust Fund Savings
×