Reynolds: Steel sector “desperately” needs government support amid job cuts

Jonathan Reynolds has argued that steelworkers “desperately” need a government that is “on their side” ahead of an announcement by British Steel that it is cutting 260 jobs at its Scunthorpe works.

British Steel confirmed today that it is closing the coking ovens at its Scunthorpe site, resulting in the loss of 260 jobs. Its parent company, the Jingye Group, said it had taken the decision partly “to overcome global economic challenges” but also due to rising costs, including energy bills.

Commenting on the initial reports about job losses at the company, the Shadow Business Secretary said: “Yet more worrying news for our steelworkers who desperately need a government on their side securing the bright future our steel sector could have.

“Steel is the bedrock of many communities across the UK. It is the foundation our manufacturing sector is built on, crucial to any net-zero ambition and the beating heart of our sovereign capability.

“That is why Labour will partner with industry to invest in the new technologies needed to keep well-paid steel jobs in the UK for decades to come.”

Following today’s announcement, a British Steel spokesperson said the company was “reluctantly having to consider cost-cutting in light of the global recession and increased costs”.

The spokesperson added: “Jingye is committed to our long-term future, but decarbonisation is a major challenge for our business and, like most companies, we’re facing significant challenges because of the economic slowdown, rising inflation and exceptionally high energy prices.”

The government said the decision was “very disappointing” while negotiations were ongoing with the steel industry about a support package for the sector. It said it would continue to work with British Steel to find a “solution for the business and the wider sector, which plays a vital role in the UK economy”.

Community’s national officer Alun Davies said: “British Steel’s plan to close the coke ovens could have a catastrophic impact on jobs and steel production at Scunthorpe and the UK as a whole.

“This move would see the company depending on unreliable imported coke and puts at risk our sovereign capability to produce steel in the UK for strategic infrastructure such as our rail networks.

“We will not accept redundancies, and nothing is off the table when it comes to protecting our members’ jobs. The government must do whatever it takes to reach a deal with British Steel that protects the loyal workforce and the future of steelmaking in this country.”

Unite general secretary Sharon Graham said: “British Steel workers are faced with the toxic combination of a greedy employer that is reneging on investment promises and a shambolic UK government that has no serious plan for the industry.”

The union leader added: “Unite’s members in British Steel are clear that they will fight this, and they will have the full support of their union.”

Reynolds pledged in January that steel would have a “bright future” under a future Labour government. Addressing industry leaders and trade union representatives, the Labour frontbencher reiterated his party’s commitment to invest £3bn alongside industry to ensure the next generation of green steel is built in the UK.

Writing for LabourList last week, Community head of research, policy and external relations Kate Dearden highlighted the “devastating impact” the steelwork closure had in Redcar, adding: “It is unthinkable that the government could repeat this mistake in other steel towns across the country.”

Dearden wrote: “Without government support, we are at risk of losing our steel industry entirely, and the tens of thousands of jobs it provides, only to rely on cheap imports from countries that don’t follow our high standards. It would be nothing short of betrayal.”