The Government has announced an ambition for up to 50% of steel used in the UK to be made in this country.
Ministers said the move, boosting production from 30%, would be coupled with reductions in steel import quotas as part of new trade measures to preserve steel production for critical national infrastructure and defence.
From July, overall quota levels for steel imports will be reduced by 60% compared to current arrangements, and steel coming into the UK above these levels will be subject to a 50% tariff.
Ministers said this would ensure the UK steel sector’s future in the face of global overcapacity.
UK steel producers and thousands of steelworkers will benefit from a new Steel Strategy aimed at protecting domestic steelmaking, said the Government.
The National Wealth Fund will be the main mechanism for providing up to £2.5 billion of financing for investment in the steel sector this Parliament.
Business and Trade Secretary Peter Kyle gave details of the strategy on a visit to Tata Steel’s plant in Port Talbot, South Wales, warning that without action, the UK’s steelmaking capability faces “real jeopardy”, leaving the country reliant on overseas suppliers for materials essential to energy security, defence and transport infrastructure.
Mr Kyle said: “Making steel in the UK is vital for national security, critical infrastructure and the wider economy.
“Steel-making is a cornerstone of our modern industrial policy that deliberately focuses support for key industries, technologies, and strategically important sectors.
“With this strategy we are closing the decades-long chapter of destructive de-industrialisation and committing instead to strengthening and sustaining Britain as a steel-making nation.”
Mr Kyle said the Government’s ambition was to boost domestic production so that it can meet up to 50% of domestic demand for steel, and secure the industry’s role in supporting vital UK sectors such as infrastructure, defence and clean energy.
The strategy confirms electric arc furnaces (EAF) as the future of British steelmaking, continuing the shift from blast furnaces to cleaner, EAF-based production using recycled scrap to support net zero.
The shift has led to job losses in steel plants including Port Talbot.
Community union general secretary Roy Rickhuss, said: “Since taking office in 2024, the Government has taken many decisive steps to support the steel industry and those who work within it. This strategy represents the culmination of these efforts.
“In particular, the urgent and necessary action taken to intervene in British Steel last spring and SSUK in the autumn has demonstrated the Government’s unyielding commitment to protecting the sector and the thousands of jobs it provides in communities across the country.
“The trade measures outlined in this strategy represent a bold and significant step forward, strengthening our domestic industry and helping to ensure that local economies continue to benefit from a secure, resilient steel sector and the employment it provides.”
Gareth Stace, director general of UK Steel, said: “This is a significant moment, and Government ministers deserve recognition for their leadership today.
“The Government’s bravery in taking the required measures represents a real shift in the culture of Westminster from protecting the ideology of free trade at any cost, to defending critical industries and national security.”
Secretary of State for Wales Jo Stevens said: “The UK Government is standing up for Welsh steelmaking and showing that we will do whatever it takes to boost domestic steel production and protect the thousands of steelmaking jobs in our communities.
“Welsh steel is expected to account for half of future UK steelmaking. It is not only a vital part of the South Wales economy, but also a crucial part of the UK’s industrial strategy, infrastructure capabilities and national security.
“We said we would back our steelworkers and steel communities and we are delivering on that promise – Welsh steelmaking now has a secure and bright future.”
Charlotte Brumpton-Childs, GMB national secretary, said: “GMB had been calling for a steel strategy for a long time, so it’s good we now have some kind of plan.
“This administration has done more for UK steel than any government for many, many years.
“But, as ever, the devil will be in the detail and key questions around ownership of Scunthorpe and the future technology mix will be key to our members and their livelihoods.”
First Minister of Wales Eluned Morgan said: “Steel has a long and proud history here in Wales, where the industry is the lifeblood of many communities.
“The publication of the UK Government’s Steel Strategy is good news for our steel communities and the thousands of people across Wales who work in or around the industry, now and in the future.
“The commitment for 50% of steel used in the UK to be made here is important, not just for steelworkers but to the Welsh economy as a whole.
“The strategy also reaffirms the transition to electric arc steel production in the UK, where Port Talbot is leading the way, not just in the UK, but across Europe. It was great to be able to meet the Tata management and unions again and to see the progress that has been made in building the new electric arc steel plant.”
