Steel safeguards brought in to protect domestic manufacturers from cheap imports have been extended to 2024.
The trade move has been welcomed by British Steel and Scunthorpe MP Holly Mumby-Croft, a key figure in ensuring the continued protections.
First brought in by the EU after US tariffs were imposed to head off Chinese imports that could have been diverted to Europe, Brexit threatened the continuity, with the Trade Remedies Authority recommending serious watering down.
Read more: £80m investment in British Steel gets underway in Scunthorpe
It met with strong opposition to the move a year ago, and after a 12-month extension, a further two-year period has been confirmed.
The measures, consistent with the EU and US position, are estimated to shield British manufacturers from £150 million in damages.
Conservative backbencher Mrs Mumby-Croft, elected in 2019, said: “I’m absolutely delighted that, once again, the government has stepped up and taken this important decision to protect our local steelworks.
“The safeguard issue is one that Andrew Percy (Con, Brigg and Goole) and I have been campaigning heavily on to make sure we get the right outcome for our steelworks, so to see this hard work pay off has been amazing. Today is a good day for Scunthorpe and I’m chuffed to bits.
“Nobody in this country can go a single day without relying on steel, this is a critical foundation industry for the UK. Russia’s recent invasion of Ukraine has shown how important it is to have home-based industries, so we aren’t reliant on other countries. In these uncertain times, it is more important than ever that we protect the British steel industry from unfair competition and import surges.”
The year-long extension was set to expire on July 1. Back in early 2021 the Trade Remedies Authority had recommended scrapping nine of the 19 protections.
Just hours before they would have been removed 15 were secured.
A British Steel spokesperson said: “This is excellent news for all UK steelmakers, our thousands of employees and the many supply-chain companies we work with.
“We’re extremely grateful for the intervention of the UK Government on this vital matter and for the support we’ve been given during the process, particularly from Scunthorpe MP Holly Mumby-Croft.”
The MP has also told how her devotion to ensuring the success of the steelworks also saw her turn down an offer of a parliamentary private secretary position.
She said: Ask anyone in Scunthorpe and they will tell you that the success of the steelworks is inherently tied to the prosperity of our local area. As a result, I know that my full focus needs to be on continuing to secure victories for steelmakers, and to build on the wider ‘Levelling Up’ plans for our town.
“It is for this reason that I recently turned down a role in government. Whilst I was honoured to be asked to serve, I wanted to ensure that Scunthorpe has an unencumbered advocate in parliament. I think today’s announcement vindicates that, with steel colleagues and I fighting tooth-and-nail to secure this victory on steel safeguards.
“Once again, this Conservative Government has shown that they are ready to take the right steps to protect jobs here in Scunthorpe.”
For leading steelworkers' union Community, the safeguards are welcome, but more needs to be done on energy and support for greening up the sector.
Alasadair McDiarmid, operations director, said: "The decision to extend the steel safeguards is hugely welcome and extremely important. Government made the right call because giving up our safeguards, when the EU and US are maintaining theirs, would leave us exposed to import surges threatening thousands of jobs.
"A fair trading environment is crucial to securing the huge investments our industry needs, but it is far from sufficient. Steelworkers are urging Government to give us the competitive energy prices, and decarbonisation support, that our EU competitors enjoy and we need for a sustainable future.
"Britain needs a strong steel industry for a prosperous and resilient economy, to deliver net zero, for our national security, and to safeguard high quality jobs in places that really need them. The safeguards extension is an important part of the jigsaw, but Government must do much more before it becomes too late.”
Do you follow BusinessLive Humber on LinkedIn and Twitter? Click to join the conversation.
