Labour pledges to make Sheffield the Steel City once again

Ahead of her speech at Labour conference today, Rachel Reeves, the shadow chancellor, announced that the party would set up a “National Wealth Fund” for the state to invest directly in projects like steel to create a return for taxpayers and rebuild industrial areas.

This includes £3 billion of investment for six clean steel plants which will benefit Sheffield, Rotherham and Scunthorpe, to help strengthen the industry which is the “backbone of Britain”.

Sheffield has long been dubbed the Steel City of the UK, after spearheading the industrial revolution in the 19th century as the manufacturing centre of the country.

Through the 80s the city lost around 50,000 jobs in steel and engineering.

“The steel industry is the backbone of Britain,” Ed Miliband, Labour’s shadow climate change secretary, told the Yorkshire Post.

“In contrast to a decade of neglect from the Tories, Labour will invest in our steel industry so it has a proud future producing clean, green steel.

“We will stand with steelworkers, unions and communities to put the industry on a path lead the world.

“Labour's National Wealth Fund is about rebuilding our industrial strength to produce jobs and wealth for the people of Britain.

“Labour will make Sheffield the Steel City once again,” the Doncaster MP said.

The plan, which could be modelled on similar institutions in countries like Norway and Singapore, aims to create long-term wealth in the UK by investing in national projects which could include battery factories and renewable-ready ports.

The projects also include the world’s largest hydrogen electrolyser plant and net-zero industrial clusters in every region of the country.

These will be paid for by a National Wealthy Fund, which Labour would fund with an initial £8.3 billion from its previously-announced Green Prosperity Plan.

Labour argued that when public money is spent on these projects, British people would own a share of that wealth and benefit from any returns on investments.

It is understood that once the fund is shown to turn a profit, then funds could be released to pay for types of social interventions, such as, for example, bus passes.

Ms Reeves will argue the policy is a “real plan for the climate”, a “real plan for growth” and a “real plan for levelling up" and see investment deployed in every UK region.

Speaking at the Labour conference in Liverpool, Ms Reeves is expected to say: “Here is the deal: The next Labour Government will create a National Wealth Fund so that when we invest in new industries, in partnership with business the British people will own a share of that wealth and the taxpayer will get a return on that investment.

“Because conference, when I say I want to buy, make and sell more in Britain I mean it.

“What you will see in your town, in your city, under Labour is a sight we have not seen often enough in our country.

“Cranes going up, shovels in the ground. The sounds and sights of the future arriving. Secure, skilled jobs for plumbers, electricians and joiners, for designers, scientists and engineers.

“Wealth that will flow back into your community and onto your high street. Wealth that the British people will own a stake in. Wealth that is invested in our country’s future.”

She will add: “That is a real plan for the climate. That is a real plan for growth. That is a real plan for levelling up.

“A zero carbon economy – made right here… made in Britain.”