On 16 February 2025 the UK Department for Business and Trade published a consultation paper to inform their development of a new steel strategy. The "Plan for Steel" consultation – open until 31 March 2025 – provides an opportunity for businesses to highlight practical challenges faced by the UK steel industry and to shape the future of UK steel policy.
Background
The Plan for Steel consultation takes place against a backdrop of significant geopolitical uncertainty and domestic change for UK steel. The new Trump administration has revived 25% tariffs on steel imports to the US from all countries, including the UK, with effect from 12 March 2025.1 Jonathan Reynolds, the UK Secretary of State for Business and Trade, has stated that there is a basis for "constructive engagement" between the UK and US,2 but it is unclear whether any exemptions for UK steel can be negotiated. With respect to imports to the UK, the UK's steel safeguard measure is also due to expire on 30 June 2026.
The consultation also follows on from recent measures demonstrating the UK government's support for the UK steel industry. These include the government's commitment of up to £2.5 billion in funding through the National Wealth Fund and other mechanisms, in addition to separate funding that has been promised through targeted negotiations. At an institutional level, on 7 January 2025 the government launched the new Steel Council, which draws together industry, union, trade association and government stakeholders and experts to advise on rebuilding the UK steel industry and developing the steel strategy.3
More broadly, the Plan for Steel strategy is one of several overlapping strategies that are expected to be published by the UK Government later in 2025, including the UK's new industrial strategy ("Invest 2035"),4 trade strategy and comprehensive ten year infrastructure strategy.5
Contributing to the government's steel strategy development can help businesses in the steel value chain to navigate the challenges and capitalise on the opportunities posed by this complex and evolving trade landscape.
Call for information
The UK Department for Business and Trade is seeking input on various topics relating to the UK's steel sector. The consultation paper sets out the objectives of the new steel strategy in broad terms while identifying certain key trends, challenges and opportunities (e.g. as posed by the transition to a green economy). The paper does not offer any specific proposals for comment. Rather, it asks a total of 30 questions across a wide range of topics, including:
- the key challenges faced by the UK steel industry;
- the availability of funding and financing for the sector;
- identifying future market opportunities for UK-made steel;
- government procurement and policy choices that can support the sector by creating demand and promoting the use of UK-made steel;
- the timely availability of sites for investment;
- the value of government intervention in the metal recycling sector with respect to scrap production;
- protection against global overcapacity;
- the impact of electricity prices on investment in the steel sector;
- green steel, decarbonisation, and carbon leakage; and
- innovation, skills gap and talent retention.6
The focus on electricity prices, scrap, decarbonisation, procurement, carbon leakage, trade defence/overcapacity and innovation echoes several of the issues raised in UK Steel's "manifesto strategy" from June 2024 in the lead up to the UK election.7
How to respond to the consultation
The deadline for written submissions to the Department of Business and Trade is 31 March 2025. Businesses, industry groups and other stakeholders are encouraged to respond to the consultation's questions and provide evidence or share practical challenges and insights via the steel strategy website to inform the government's deliberations.
Ruth Benbow (Knowledge Manager, London) contributed to the development of this publication.
1 See our client alert, 'President Trump Expands Steel and Aluminum Tariffs to All Countries; Effective March 12, 2025', available here. The US had previously suspended its section 232 tariffs on imports of steel and aluminium from the UK on 1 June 2022 in exchange for the UK suspending tariffs on certain US products including whiskey, motorcycles and jeans.
2 See G. Parker, 'UK looks at tariffs on US products if steel and aluminium get caught in trade war', Financial Times (16 February 2025) available here.
3 UK Department for Business and Trade, Government sets out plan to secure the long-term future of steelmaking and safeguard steel communities, 7 January 2025, available here.
4 See UK Department for Business & Trade, Invest 2035: The UK's modern industrial strategy (updated 24 November 2024) available here.
5 See HM Treasury, 10 Year Infrastructure Strategy Working Paper (updated 27 January 2025) available here.
6 UK Department for Business and Trade, "The steel strategy: the plan for steel",16 February 2025, available here.
7 UK Steel, Seven Opportunities to Build Our Steel Industry (June 2024) available here.
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