British steel needs “guarantees, not guff” as Labour accuses Prime Minister of “playing fast and loose with reality”

Labour has accused the Prime Minister of “playing fast and loose with reality” following his appearance at Prime Ministers’ Questions. Despite Boris Johnson stating the government’s infrastructure plans were an opportunity for UK steel businesses, the Department for Business, Energy and Industrial Strategy does not know how much UK steel is being used in the infrastructure projects he listed including HS2, offshore Wind and Hinkley C power station.

In addition, despite the government announcing a Clean Steel Fund in 2019 no money from the £250 million fund has been allocated to decarbonise the industry.

Lucy Powell MP, Labour’s Shadow Business and Consumers Minister, said:

“Not for the first time the Prime Minister is playing fast and loose with reality. His own government can’t back up his claims on whether the steel used in UK infrastructure projects including Hinkley Point, and new wind farms is made in Britain.

“UK steelmakers and workers need guarantees not guff. That’s why Labour is calling for the government to introduce stronger Buy British guarantees in procurement notices, to maximise the benefits of infrastructure spending, save and create jobs, and boost prosperity in steel communities across the country.”

Ends

Notes to Editors

Analysis of the government’s latest government steel procurement data shows that 24p in every pound of government infrastructure spending on steel went abroad.

· The government’s Steel Public Procurement Document 2020 states that “Data not available at the time of publication” on the amount of UK produced steel in Hinkley Point.

· For offshore wind, the document notes that the industry has set a target for 50% UK content by 2020. The most recent figures (2017) show that the industry achieved 48% lifetime UK content.

· UK Steel has called for the government to set targets for UK steel content of major projects starting with HS2 but this has not happened, and the document doesn’t not specify the proportion of UK steel to be used in construction.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/925356/steel-pipeline.pdf

The Clean Steel Fund was announced in 2019 and Ministers have said that money will not be allocated until 2023. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/943760/clean-steel-fund-call-for-evidence-summary-responses-.pdf

Labour is calling on the government to set targets for UK steel content for major public works with a guarantee to state a preference for the use of UK produced steel through the contracting process.

PMQs transcript – UK steel production

· Boris Johnson: “We’re investing in huge sums in modernising British steel making plants more environmentally friendly but we have a massive opportunity because this government is engaged on an infrastructure campaign: HS2, Dogger Bank Wind Farms, Hinkley, all the things that we’re now building, the Beeching railway reversals, all the things we’re doing across the country they will call for millions and millions of tonnes of British steel.”