10:37 Lucy Powell (Labour)

My hon. Friend is absolutely right. What devastated the steel industry was, as we know, 13 years of Labour Government. We have made it very clear, with our industrial decarbonisation strategy, published only last week, that we remain committed to a UK steel industry and a decarbonised future, and also to green jobs, particularly in in our levelling-up agenda.

Obviously, steel is also a crucial part of this Government’s decarbonisation strategy. Can my right hon. Friend reassure my constituents in Oldbury, where a Liberty Steel site is currently based, that he will ensure that Black Country steel is placed at the heart of that decarbonisation strategy and that they will get the support they need from the Government as we go through this difficult time for Liberty Steel Group?

I assure my hon. Friend that we are committed to the steel industry in the UK. That is why, last week, we published the industrial decarbonisation strategy, which I was very pleased to commission as energy Minister. I look forward to speaking to him about the next steps forward for this industry.

I would be very happy to work with my hon. Friend to protect jobs. She is doing a great job of representing her constituents. All I would say on this is that we published last week the industrial decarbonisation strategy, which is the first of its kind in the world, and we are absolutely committed to a continuing future for British steel.

I reassure my hon. Friend, whom I have met on several occasions on precisely this issue, that we remain committed to decarbonised steel and a decarbonised industrial strategy, which I have referred to. That is the basis on which we can have a strong future for the industry.

The Labour party talks about vision. Does my right hon. Friend agree that this Government’s commitment to net zero and their clear vision of being a technology-led innovation superpower, as demonstrated by initiatives such as the Clean Steel Fund, the Advanced Research and Invention Agency, and the Future Fund: Breakthrough, mean that the future of UK steel is positive and in very good hands?

Obviously, I entirely agree with everything that my hon. Friend has said. Reflecting on two years as a Minister within the Department, I can tell her that we have had the 10-point plan for the green industrial revolution, the Energy White Paper, the decarbonisation industrial strategy, and, as she says, we have committed hundreds of millions of pounds to making sure that we drive the green industrial revolution. It is a very exciting time to be in Government and I look forward to speaking with her precisely about how we can move forward.

Investing in transport infrastructure such as the full HS2 route and a rolling programme of rail electrification is an excellent way to boost economic recovery and put the UK on the path to net zero, but the Government will be wasting a huge opportunity to safeguard and grow jobs in our steel industry if they do not use public procurement to support it. Will the Secretary of State commit to setting targets for UK steel content in contracts for major public works, and if not, why not?

My right hon. Friend will know that the steel industry in particular is subject to fairly stringent World Trade Organisation rules. She will also know, given the publication of our industrial decarbonisation strategy, that we are rigorously focused on trying to source clean, green steel in order to drive a green industrial revolution and to create the infrastructure projects without which we cannot have any real economic growth.

Last year, the Government spent £4.8 billion on subsidies for wind power, yet almost no wind farms use UK steel. Those orders would be a boon to the struggling steel industry, but the Department does not even include renewable energy products in its annual list of orders that went to domestic suppliers. In January, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stratford-on-Avon (Nadhim Zahawi), said that the Government would consider reporting the share of UK steel used in offshore wind projects

I am very pleased to see my right hon. Friend in his place. The key point is that Liberty Steel produces via electric arc furnaces, so it is clean steel. A lot of the steel that we produce relies on older methods. That is why, for me, in terms of our decarbonisation strategy, the future of Liberty Steel is of great importance.

For national security reasons, to tackle the climate crisis, and to build our rail infrastructure, electric vehicles and the like with well-paid unionised jobs, domestic steel production must be a strategic national priority. However, time and again the Government have let down Britain’s steel industry. On their watch, we have seen British Steel collapse, minimal action taken to tackle the huge handicap of high energy prices for our steelmakers, and an over-reliance on imported steel for Government projects. Prior to Brexit, the excuse for the lack of Government intervention was EU state aid rules. What is the excuse now?

I commend my hon. Friend’s work in representing COP26 and doing a great job in engaging with businesses on COP26. I assure him that green steel is very much at the front of our minds. It is something that I am very focused on. We have mentioned the Steel Council, and I have also mentioned a number of times the industrial decarbonisation strategy. Green steel is absolutely the way forward, and I look forward to working with him to see how we can make progress in this vitally important area.

One of the lessons of the pandemic has been that we need a robust domestic industrial strategy and we cannot be dependent on imports—either of final products or through the supply chain—from China or anywhere else. Does my right hon. Friend agree that steel is an integral component of that industrial strategy—and, with time, decarbonised steel?

I reassure my hon. Friend that the fact that we published the industrial decarbonisation strategy only last week suggests to me, and is a signal to the world of, how seriously we take the strategic impact and necessity of steel, and the net zero commitment.

There were a lot of questions there. Briefly, on Greensill, we are continually looking at the potential impact. I must say to the hon. Gentleman that we are committed to a future for the steel industry here in the UK. As hon. and right hon. Members have suggested, the decarbonised nature of that sector—green steel—is absolutely the focus and at the front of our minds as we try to forge a path for the industry in the near future.

I am delighted to see my hon. Friend taking part in these critically important proceedings. I know how hard he has worked not only to win his seat and be an excellent, first-rate Member of Parliament, but also in his passion for green energy, renewable technologies and hydrogen; in fact, I am surprised that he did not mention hydrogen in his question. I am delighted to work with him to ensure that we have a future for the steel industry here in the UK.

Tackling emissions from steel is critical to the fight against climate change, and I have heard the Minister refer to green steel. The clean steel fund was announced in 2019, but steelmakers will not be allocated any funding from the £250 million scheme until 2023. Why will Ministers not bring forward this funding to boost the industry and its green future?

As the hon. Lady knows, we are always looking at ways in which we can promote green steel and industrial decarbonisation. I have alluded many times to the fact that we published the strategy last week, and the steel fund is clearly part of that strategy.

[Source]