Steelworkers today raised fears for the industry’s future amid Tory plans to slash help with energy costs.
The Government is curbing support for sectors battling sky-high power prices, which surged after Russia’s invasion of Ukraine.
While heavy energy-using industries like glass, ceramics and steelmakers will get a larger discount than other firms, critics said it would still leave British companies at a disadvantage compared with foreign rivals.
Community steelworkers’ union general secretary Roy Rickhuss said: “The Government’s decision to gamble on the future of the steel industry by weakening its energy support scheme is putting at risk tens of thousands of jobs in the industry and supply chain.
“Our steel industry cannot succeed if we continue paying twice as much for energy as our EU competitors, and our industry cannot decarbonise if there is no partnership with government.
“Britain needs its steel and our industry needs a government that backs it with actions, not empty promises.”
UK Steel director-general Gareth Stace warned the “reforms significantly narrow the help that government will provide”.
"The Government is betting on a calm and stable 2023 energy market, in a climate of unstable global markets, with the scheme no longer protecting against extremely volatile prices," he feared.
"There will be concerns that the newly-announced support falls short of that of competitor countries, including Germany.”
In the Commons, MPs from all sides urged the Government to help British steel firms compete with international rivals.
Labour MP Stephen Kinnock, who chairs the All-Party Parliamentary Group on Steel, and whose constituency include Britain’s biggest steelworks, Tata at Port Talbot, accused the Government of “once again letting down our steel industry and forcing our steelworkers to compete with one hand tied behind their back”.
He told MPs: “The German Government have guaranteed their steel industry an electricity price of €130 per megawatt hour for 2023.
“In contrast, what the minister has announced only provides our steel industry with a discount on electricity prices above £185 per megawatt per hour.
“That leaves UK steel producers to pay an estimated 63% more than their German counterparts.”
Holly Mumby-Croft, the Tory MP for Scunthorpe, where British Steel is based, urged the Government to “look at the evidence over the next 12 months so we can reassure ourselves that our support is in line with that in other countries, and so we know we are providing a level playing field for the domestic steel industry in this country”.
She added: “That is all it asks.”
Tory former minister Andrew Percy said: “We are not operating on a level playing field across Europe, as other Governments continue to subsidise their steel industries unfairly against ours.”
Shadow Business Secretary Jonathan Reynolds said the latest energy announcement was "yet another sticking plaster from a Government unable to get to grips with the energy crisis or take the action needed to secure a future for the domestic steel industry".
He added: "Conservatives are spending billions of taxpayers' money without any action on long-term fixes like investment in energy saving.
"Labour is committed to a domestic steel sector and will invest alongside industry to secure a future for green steel in the UK."
Treasury Minister James Cartlidge insisted the Government was “aware of the differing levels of support” in different countries.
He told MPs: “In fact, with schemes such as this, it is difficult to make a comparison internationally because of the variations.
“On the additional discounted support for energy and trade-intensive industries that we have announced, international comparators were a factor in considering the greater generosity of that support.”
He added: “Across Government we want to see what we can do to support the steel sector.”
The Mirror has been campaigning to Save Our Steel since 2015 when the industry was hit by plant closures and thousands of job losses.
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