Labour’s planned steel tariffs have triggered a cross-party backlash, with politicians warning that thousands of jobs could be placed at risk when the new rules come into force next month.
Liam Byrne, Labour chairman of the Business and Trade Select Committee, said MPs had been left “highly alarmed” after hearing warnings from steel producers about the impact of the Government’s proposals.
The committee has written to ministers after a meeting with industry leaders, warning that the measures may not be properly designed and could put jobs across Britain’s manufacturing sector under threat.
Under the new system, the amount of steel that can enter the UK tariff-free will be cut by 60 per cent. Imports above the new quota will face a 50 per cent tariff — double the current rate.
Ministers insist the move is necessary to protect British steelmaking and prevent the UK from becoming a dumping ground for surplus global steel as other major economies tighten their own protections.
The Government’s ambition is to increase the proportion of British-made steel used in the UK from around 30 per cent to 50 per cent.
But critics warn the policy could have unintended consequences, particularly for industries that rely on specialist steel products not manufactured domestically.
Shadow business secretary Andrew Griffith said aerospace, defence and other strategic sectors could be hit because many of the steels they require are not produced in Britain.
Liberal Democrat business spokeswoman Sarah Olney also warned that manufacturers could face soaring costs, arguing that replacing specialist overseas suppliers could take years rather than weeks.
Industry figures have cautioned that the measures risk damaging the very manufacturing base they are designed to protect.
However, business minister Chris McDonald defended the plans, saying the Government had made a clear choice to rebuild domestic capacity and secure the future of British steel.
He insisted ministers had listened to concerns from manufacturers but maintained that protecting UK production was the priority.
The battle over steel tariffs now puts Labour under pressure to prove that its industrial strategy can protect jobs without pushing up costs for the businesses that depend on the industry.
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