UK Steel Strategy

Baroness Bennett of Manor Castle Excerpts

Monday 23rd March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

We engaged carefully with the industry in constructing these tariffs, and we will review the measure after 12 months to ensure it remains effective.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the Statement says:

“Britain can recycle more steel. Making better use of scrap steel is fundamental to the sector’s future growth”.


However, I am sure the Minister is aware that, currently, four-fifths of the UK’s scrap steel is exported, primarily to non-OECD countries with far lower environmental standards than us. I looked carefully at the strategy, but I could not see any actions planned by the Government to ensure that scrap steel stays in the UK to be recycled. I also could not find a target for the level of recycling that we expect of that scrap steel; I hope that it will eventually be 100%. How long will that take? If I have missed any actions and targets, I would love to hear about them.

[Baroness Lloyd of Effra (Lab)]

The noble Baroness is right that there is a strong emphasis on the importance of scrap steel. The move to using some of the electric arc furnaces will increase the demand for that scrap steel in our supply chain. Our move towards the aim of getting the domestic market share back to 50% will drive much more demand for domestic scrap steel.

--- Later in debate ---

[Baroness Lloyd of Effra (Lab)]

I thank the noble Lord for his questions. On the effectiveness of electric arc furnaces, there are a couple of points. First, at Sheffield Forgemasters, we see the technical capability to produce steel to the highest quality, for the nuclear industry, aerospace and defence. Independent experts’ view is that any grade can be made by electric arc furnaces, so that addresses the question about the quality of steel that can be made by this technology. On the other point about the benefit to Wales, we have already invested £500 million in the electric arc furnace for Port Talbot. We are working with the Secretary of State for Wales and the private sector to see what investment can be unlocked under the £2.5 billion that the National Wealth Fund will have allocated for steel projects.

[Baroness Bennett of Manor Castle (GP)]

My Lords, since there is time, I note that the Statement talks, I am happy to say, about the shift to “greener, decarbonised steel production”. However, will the Minister acknowledge that there is a rather great irony that when the Statement comes to consider the potential markets for this British-made steel, it talks about the third runway at Heathrow requiring 400,000 tonnes of steel? This is the third runway that, according to the Government’s own figures, uncovered by Politico last year, will result in an addition 2.4 million tonnes of CO₂ equivalent being released into the atmosphere each year by 2050. This is at the same time as the Joint Intelligence Committee is warning what a great threat to our security the climate emergency is.

[Baroness Lloyd of Effra (Lab)]

The noble Baroness is right: there is a great market for green steel. Hatch estimates that over 90% of steel demand in the UK in 2050 will be steel produced with low emissions. The transition to net zero is across the entire economy, and we will take that forward across all sub-sectors.