Government accused of 'breathtaking hypocrisy' as thousands of jobs threatened at Scunthorpe steelworks

Alexandra Wood
By Alexandra Wood

Senior reporter

Published 24th Aug 2024, 14:01 BST
Updated 24th Aug 2024, 15:23 BST
The government has been accused of "breathtaking hypocrisy", as fears grow that Scunthorpe steelwork’s blast furnaces could close by Christmas, leading to 2,500 job losses.

British Steel’s Chinese owners are reportedly wanting to speed up the transition to greener energy as they negotiate a deal for £600m government support.

If Scunthorpe’s two blast furnaces were to close, the 3m tonnes of steel made there would be replaced with “massive” Chinese imports.

Shadow Secretary of State for Business and Trade Kevin Hollinrake said it would mean the end of virgin steel-making in the country "which is completely contrary to the promises that were made."

Archive pic - A steelworker watches as molten steel pours from one of the Blast Furnaces during 'tapping' at the British Steel - Scunthorpe plant in north Lincolnshire, north east England on September 29, 2016.Archive pic - A steelworker watches as molten steel pours from one of the Blast Furnaces during 'tapping' at the British Steel - Scunthorpe plant in north Lincolnshire, north east England on September 29, 2016.
Archive pic - A steelworker watches as molten steel pours from one of the Blast Furnaces during 'tapping' at the British Steel - Scunthorpe plant in north Lincolnshire, north east England on September 29, 2016.

Previously the plan had been to continue running the blast furnaces at Scunthorpe until the introduction of an electric arc furnace at Teeside, which could take five to 10 years, he said.

The Conservative MP for Thirsk and Malton accused Energy Secretary Ed Miliband of "virtue-signalling about UK decarbonisation when we are offshoring emissions".

He said: "They are going to stop imported coal and coke in October and that would stop production in Scunthorpe. This is a very serious situation.

“Other people have a different perspective whether you retain a virgin steel making capacity in the UK - otherwise there will be massive imports from China.

"The most galling thing is that Labour were absolutely committed in opposition to retaining virgin steel making capacity. The hypocrisy from the government is breathtaking."

One of the two other blast furnaces at Port Talbot has already closed, with the other due to follow next month.

Charlotte Brumpton-Childs, GMB national officer, said there had been no consultation over an early closure.

She told The Guardian: “Early closure of the blast furnaces at Scunthorpe would be devastating for the community and workforce. Unions have been assured throughout the process that the blast furnace operations would continue throughout the construction of an electric arc furnace.”

Most of the world’s steel is made in blast furnaces. Blast furnaces in the UK use imported iron ore with coking coal and other ingredients to produce pig iron, which can then be turned into steel.

But it is a very carbon intensive process.

EAFs use electricity to melt scrap steel, direct reduced iron, or pig iron to create molten steel. They can make the finest grades of steel.

North Lincolnshire Council leader Rob Waltham said if the reports were true, it would be “absolutely disastrous” for steel-making in the UK and jobs in Scunthorpe and the government had “let us down”.

Labour promised to “green steel” with a £3bn fund, but Coun Waltham said it “defies all logic” if that meant cutting off jobs and the industry.

He said: "Once you turn the blast furnaces off, you can’t make steel, that’s the challenge.

"You are then basically dependent on world markets for steel because you can’t produce your own.

"My call to the government is step up, pay the steelworkers wages like the last government did and make sure you keep your promises.”

British Steel told The Guardian imports of raw materials had reduced due to ongoing production issues. They were discussing their decarbonisation plans with the government and no final decision had been made.

A Department for Business and Trade spokesperson said: “We’re working in partnership with trade unions and businesses, including British Steel, to secure a green steel transition that’s right for the workforce and safeguards the future of the steel industry in Britain.

“Decarbonisation does not mean deindustrialisation, which is why we’ve committed to £2.5 billion of investment to rebuild the UK steel industry and support communities for generations to come.”