UK trade body UK Steel has called on the Prime Minister to ensure duty-free access to EU markets for UK metals, avoiding UK firms facing additional costs.
He also demanded lower energy costs so that factories can compete with European competitors and revise tax rates on businesses, which will benefit the stagnant sector.
UK Steel has released a 10-page "mini-manifesto" - "New Deal for Steel: Laying the Foundation for a vibrant UK steel industry" - which it sent out to key ministers in the new government.
It says:
“The steel industry is already a major investor in the UK, averaging £ 200m each year across the top five UK producers. But we want to invest more in our factories, in our people, and in research and development (research and development).
With the right business environment in place, through the steps outlined in this document, the steel sector is poised to commit to an additional £ 100 million a year capital investment, as well as £ 50 million in new R&D funding for for five years. ”
Steel Workers Union Roy Rickhass echoed the call: “Our industry provides thousands of jobs, supports families and communities across the UK, and it's time for the government to give it the support it needs to survive ... Government support in these six key will help create a level playing field in which our industry must be sustainable and prosperous in the future. ”
Many areas where steel mills and factories are based have voted for Brexit and could be decisive battlefields in the general election.
The manifesto comes amid lingering uncertainty over the former UK steel mill in Scunthorpe, which has been in bankruptcy and restructuring since May.
However, insiders believe a deal could be closed this week to sell the business of Turkish company Erdemir, saving 4,500 jobs and an additional 15,500 in the supply chain.
UK Steel Director Gareth Stays said:
“It’s time for the government to take action on unprecedented energy prices, reform the business rate regime and support British industry when it comes to large government contracts.
It is quite possible for the UK to have a strong and resilient steel industry, as it is for any other major developed economy. The steel industry is ready to invest in its future in the UK, and all it takes is a partnership with a government that can take action and unleash its potential. ”
