Government launches Steel Council after job losses

The government has launched a new Steel Council following thousands of job losses in the sector last year.

The council will help steer plans for the industry which will be backed by up to £2.5bn of investment.

Business Secretary Jonathan Reynolds, who will chair the council's first meeting later, said steel communities had "had enough of lurching from crisis to crisis".

The council will include representatives from Tata Steel, British Steel and Sheffield Forgemasters, which is owned by the Ministry of Defence.

Last year, Tata Steel said it was replacing traditional blast furnaces with an electric arc furnace at its biggest UK site in Port Talbot, Wales.

Traditional steelmaking ceased in September, with thousands of workers losing their jobs.

British Steel also announced it would close blast furnaces in Scunthorpe in 2023, and unveiled plans to roll out a less polluting electric arc furnace.

The plans, which are greener but require fewer workers to keep them going, raised fears over potentially thousands of job losses.

The Labour-led government has vowed to spend £2.5bn "to rebuild the steel industry".

The money would sit alongside a separate £500m package for Tata Steel to part-fund the new steel production at Port Talbot.

The Steel Council, co-chaired by the chairman of Teesside-based Materials Processing Institute, is set to work towards the launch of the government's steel strategy in spring.

This strategy is expected to set out how steel capacity can be increased in the UK and how investment decisions can meet demand and boost economic growth.

The council will also discuss how to allocate the up to £2.5bn of funding.

Mr Reynolds said: "The industry and steel communities have had enough of lurching from crisis to crisis - this government will take the action needed to place steel on a secure footing for the long term.

"With the launch of the Steel Council we're placing workers and local communities at the heart of our plans as we bring forward £2.5bn of investment to secure growth right across the country."

Gareth Stace, director general of trade group UK Steel, said: "The establishment of the Steel Council marks a defining moment for the future of steelmaking in Britain.

"The council represents a crucial step towards creating a comprehensive government steel strategy - one that lays the foundations for a sustainable and resilient industry."

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