The UK government is about to double the tariffs on imported steel to 50%,and to reduce the tariff free quotas by a massive 60%. This means imported steel will become a lot dearer for all those steel using industries and for construction where they rely on imports. The government is using a Brexit freedom to do this.
The reason I presume they want to make steel so much dearer, raising business costs, is to protect the UK domestic steel industry. This is probably driven by their decision to make the taxpayer pay all the losses on the two remaining UK blast furnaces at Scunthorpe where the government intervened and took over managing these facilities from their Chinese owners. They did so to avoid closure and job losses, without bothering to reach an agreement on the transfer of the assets and the handling of the past debts from the Chinese company. At the time I urged them to sort out ownership and to ensure the UK would not be liable for past losses, for past debts, or have to pay any compensation on the transfer. When I last asked Ministers about how they are getting on sorting out the ownership and debt issues they declined to give details but acknowledged it remains a set of problems they are discussing with the owners. There are reports the Chinese are asking for compensation.
The most recent figure for the losses is £1.3m a day at Scunthorpe, well up on the reported losses at the time of the transfer of management. The payments for these losses are state aid, and would require EU consent if we were still in the EU or if we realign this sector under re set. The government needs to present a Business Plan with numbers to Parliament, as this is becoming a large commitment of public spending.
They also need to explain what their longer term plan is. They seemed to be pledged to close all blast furnaces as they burn coal, and substitute electric arc steel recycling. If this is also still the plan for Scunthorpe, when do they expect to close the blast furnaces? How long do they think they can and should keep these jobs given the loss rate and the longer term plan? There is of course a case to keep blast furnaces in the UK rather than importing virgin steel, but to do so economically requires a very different approach to energy provision and costs.
What impact will the new steel tariff and quota regime have on the losses at Scunthorpe? Will it make a big difference? Will Scunthorpe be able to sell more steel as a result? What is the estimated impact on the rest of UK industry and construction from dearer steel? The government’s attempt to save jobs could prove very costly to taxpayers, could end in the loss of the jobs, and could in the meantime just push up costs for steel users.
May 2, 2026
One mistake leads to another.
On Saturdays, people often shout ‘you don’t know what you’re doing!’ at bad referees.
Maybe the government does know what it is doing, but it is of no concern to them.
May 2, 2026
If they do know what they are doing they are clearly enemies of the UK as they are wrecking it. Either appallingly stupid or evil – take your pick. Perhaps most evil is the destruction of jobs for the young that they have caused with their doom loop agenda.
May 2, 2026
Indeed.
Sir Mark Rowley is right to point out the stupidity of Zak Polanski’s foolish retweet and he is right to have apologised. But the real problem is blatant Two Tier Justice from people like Sir Kier Starmer, Sir Sadiq Kahn, the sentencing council, much of the legal profession all now DEI “educated” and people like the journalist’s microphone grabbing Sir Mark Rowley who has done almost nothing to deter blatant Anti-Semitism.