UK Launches Crucial Steel Strategy Consultation Amidst Global Uncertainty

The UK Department for Business and Trade launched a critical consultation on February 16, 2025, seeking input for its new steel strategy, “Plan for Steel.” This initiative, open until March 31, 2025, aims to address significant challenges facing the UK steel industry and shape its future policy landscape. The consultation comes at a pivotal moment, marked by both international trade tensions and domestic policy shifts.

The timing of the consultation is especially significant given the recent reintroduction of 25% tariffs on steel imports to the US from all countries, including the UK, effective March 12, 2025, by the Trump management. UK Secretary of State for Business and Trade Jonathan Reynolds stated there is a basis for “constructive engagement” between the UK and US, but the possibility of exemptions for UK steel remains uncertain. Adding to the complexity, the UK’s steel safeguard measure is set to expire on June 30, 2026.

However, the consultation also builds upon existing goverment support for the UK steel sector. This includes a commitment of up to £2.5 billion in funding through the National Wealth fund and other mechanisms, alongside additional targeted funding. Furthermore, the government launched the Steel Council on January 7, 2025, bringing together industry leaders, unions, trade associations, and government experts to advise on rebuilding the UK steel industry and developing the steel strategy. The council’s formation underscores the government’s commitment to a collaborative approach.

“Plan for Steel” is part of a broader set of strategies expected from the UK Government later in 2025,including the “Invest 2035” industrial strategy,a new trade strategy,and a complete ten-year infrastructure strategy. This interconnectedness highlights the strategic importance of the steel sector within the UK’s overall economic planning.

The consultation paper itself doesn’t offer specific proposals but poses 30 questions across a wide range of topics. These include:

• Key challenges faced by the UK steel industry
• Funding and financing availability
• Future market opportunities for UK-made steel
• Government procurement and policies to support the sector
• Availability of investment sites
• Government intervention in metal recycling
• Protection against global overcapacity
• Impact of electricity prices on investment
• Green steel, decarbonization, and carbon leakage
• Innovation, skills gaps, and talent retention

The emphasis on electricity prices, scrap metal, decarbonization, procurement, carbon leakage, trade defense/overcapacity, and innovation reflects many of the issues raised in UK Steel’s “manifesto strategy” from June 2024. This alignment suggests a shared understanding of the sector’s critical priorities.

The Department for Business and Trade urges businesses, industry groups, and stakeholders to submit written responses by March 31, 2025, via the steel strategy website. Their input will be crucial in shaping the government’s final steel strategy and navigating the complex challenges and opportunities facing the UK steel industry.

Steel Strategy Consultation: Navigating Global Uncertainty to Reinforce UK’s Industrial Future

Senior Editor: In the shadow of global trade unease and at a pivotal juncture for domestic economic policy, the UK has just announced a crucial consultation on its “Plan for Steel.” What makes this move now more relevant than ever for the UK’s steel industry?

Steel Industry Expert: The timing of the UK’s steel strategy consultation is indeed crucial. global uncertainty often breeds innovation and necessity for strategic alignment. The recent imposition of 25% tariffs on steel imports to the US underscores the necessity for the UK to chart its own course. This is a moment where the UK must defend its interests and nurture its steel sector as a vital component of its industrial future. The expiration of steel safeguard measures in June 2026 also adds urgency to developing a robust, forward-thinking strategy.

Senior Editor: Wiht meaningful government support already in motion, including £2.5 billion committed through the National Wealth Fund, how do you see these resources impacting the broader goals of the steel strategy?

Steel Industry Expert: The UK government’s commitment through the National Wealth Fund—and its additional targeted funding—demands a strategic utilization. This financial backing is instrumental in creating a resilient steel sector equipped to meet future demands. The formation of the Steel Council and inclusion of a diverse group of stakeholders is a testament to the government’s collaborative approach. By harnessing innovation, developing skills, and focusing on green steel initiatives, these resources can be leveraged to address crucial challenges and leverage future market opportunities.

Senior Editor: What are the critical challenges the UK steel industry faces today, and in your view, what should be the focus areas moving forward?

steel Industry Expert: Key challenges center around market access, driven by global trade tensions, overcapacity protection, and decarbonization efforts. The new strategy must focus on these areas by:

• Market Access: In light of recent tariffs, forging strong trade agreements and advocating for favorable terms is paramount.

• Overcapacity Protection: Measures to shield domestic steel from global market volatility are essential for sustainability.

• Decarbonization: Investments in green steel technologies can address environmental concerns and position the UK as a leader in enduring steel production.

• innovation and Skills retention: Cultivating a skilled workforce through targeted education and training programs will strengthen the industry’s foundation for future growth.

Senior Editor: Given the interconnected nature of “Plan for Steel” with the broader “Invest 2035” strategy and infrastructure plans, how can stakeholders ensure alignment and maximally benefit from these intersecting policies?

Steel Industry Expert: Integration across strategies is key. Stakeholders must advocate for policies that reinforce each othre—such as advancing infrastructure projects that prioritize UK-made steel.Collaboration between government bodies, industry experts, and trade associations will ensure that the steel strategy aligns seamlessly with broader economic plans, magnifying benefits and creating synergies that boost the entire sector.

Senior Editor: How important is the role of government procurement and policies in supporting the UK steel sector’s growth and sustainability?

Steel Industry Expert: Government procurement policies are pivotal.By prioritizing the use of UK-produced steel in public projects, the government not only supports domestic manufacturers but also stimulates demand. Policies that incentivize sustainable practices and innovation are equally vital. These measures can definitely help steel producers navigate the challenges posed by global competitive pressures and shifting market dynamics.

Senior Editor: With an emphasis on innovation and talent retention, what tangible steps can be taken to bridge the skills gap and drive forward the UK’s steel industry?

Steel Industry expert: Bridging the skills gap requires a multi-faceted approach:

• Education and Training Programs: Collaborative initiatives with educational institutions to develop targeted training programs.

• Apprenticeships and Internships: Increasing opportunities for hands-on experience to cultivate the next generation of steel industry professionals.

• R&D Investment: Supporting research and growth to drive innovation and inspire a skilled workforce that is eager to tackle new challenges.

Senior Editor: As stakeholders prepare to submit responses to the consultation, what key points should they prioritize to influence the formulation of a robust steel strategy?

Steel Industry Expert: Stakeholders should focus on:

• Articulating clear challenges and opportunities, especially concerning market competitiveness and decarbonization.

• Recommending practical solutions and strategies to address identified issues.

• Highlighting success stories and lessons learned from past initiatives to inform strategic planning.

By presenting well-substantiated perspectives, stakeholders can directly influence the strategic priorities and implementation considerations of the government.

Final Thoughts

Senior Editor: As we approach the closing of this seminal consultation, what key takeaways would you offer to our readers engaged in the steel industry?

Steel Industry Expert: The “Plan for Steel” consultation is a defining moment for the UK steel industry. The stakeholder response delivered through complete insights can shape a sustainable, innovative future for this crucial sector. Engagement and collaboration remain the cornerstones of this transformative journey. I encourage all stakeholders to participate actively and share their expertise to drive the UK’s industrial resurgence forward.

Engage with Us! Share your thoughts and opinions on how the UK steel strategy should evolve in the comments below or on social media. Your insights are valuable as we chart this new course.