UNIONS have welcomed the government’s plans for 50 per cent of the steel used in Britain to be made in the country, up from 30 per cent.

From July, it will lower the tariff-free quota level for steel imports by 60 per cent compared with current arrangements and double taxes on imported steel above these levels to 50 per cent.

Unite general secretary Sharon Graham welcomed the strengthening of the tariff regime “to prevent the dumping of cheap foreign steel onto the domestic market from June.

“But this last-minute situation is just another reminder that the reactive approach to UK steel that sees it lurch from crisis to crisis needs to be overhauled.  

“Ministers must introduce a long-term strategy that secures the future of the industry, which is vital to the UK’s economy and national security, without delay.

“That includes legislating that all UK infrastructure developments and public-sector projects use steel made in Britain. This can be done by designating steel as an area of critical national infrastructure.”

GMB national secretary Charlotte Brumpton-Childs said that it’s “good we now have some kind of plan.

“But, as ever, the devil will be in the detail and key questions around ownership of Scunthorpe and the future technology mix will be key to our members and their livelihoods.”

Community general secretary Roy Rickhuss said: “The trade measures outlined in this strategy represent a bold and significant step forward, strengthening our domestic industry and helping to ensure that local economies continue to benefit from a secure, resilient steel sector and the employment it provides.”

The National Wealth Fund will be the main mechanism for providing up to £2.5 billion of financing for investment in the steel sector during this parliament.

The strategy also confirms electric arc furnaces as the future of British steelmaking. The shift from blast furnaces to production using recycled scrap to support net zero has led to job losses in steel plants, including at Port Talbot in south Wales.

Unite Wales regional secretary Peter Hughes said: “The government must also back the production of virgin green steel, as we can’t simply rely on electric arc furnaces to produce all the steel we need.”