The UK steel industry is facing fresh pressure for a full-scale public inquiry, after trade union leaders warned that the sector has been allowed to drift into crisis without effective government oversight or a coherent long-term strategy.
Delegates at the GMB’s annual congress in Blackpool backed a motion calling for an urgent investigation into how Britain’s steel production base has reached what they described as a “critical point”, raising renewed concerns over industrial capacity, energy costs and international competitiveness.
The motion reflects growing unease within parts of the trade union movement about the future of heavy industry in the UK, with steelmakers continuing to grapple with high energy prices, global oversupply and long-term structural challenges.
Union representatives argued that only a formal inquiry could properly establish how successive policy decisions, market pressures, and regulatory changes have combined to weaken the sector.
Supporters of the motion said the crisis facing UK steel is not the result of a single shock, but a prolonged period of decline in which domestic production has been steadily eroded while reliance on imports has increased.
They warned that without intervention, the UK risks further loss of strategic industrial capacity at a time of heightened geopolitical uncertainty, when domestic production of key materials is increasingly viewed as a matter of national resilience.
The debate comes against a backdrop of repeated warnings from industry figures that Britain’s steel sector is under sustained strain. High electricity costs have long been cited as a key factor undermining competitiveness, with UK producers often paying significantly more for energy than counterparts in Europe and Asia.
In addition, global market pressures and shifting demand patterns have placed further strain on domestic operations, prompting periodic plant closures, restructuring programmes and job losses across the sector over the past decade.
Union leaders argue that these pressures have been compounded by the government’s lack of strategic planning, leaving the industry vulnerable to external shocks.
The GMB motion calls for a comprehensive inquiry into how policy decisions have shaped the current state of the sector, including energy pricing, procurement strategy and industrial support frameworks.
Ian Kemp, Rotherham Steelworker, said: “Maybe, just maybe, we need to look at the deeper issues affecting the industry.
“We need, for example, to look at the owners. In the last 40 years we’ve had an eclectic bunch of owners at the successor companies to the British Steel Corporation.
“Some have been quite good. Some not so good but at least honest. Then there’s been the cowboys, charlatans and crooks. That’s privatisation for you. You never know what you’re going to get.
“Government policies need examining. Not just those specific to the steel industry. But, things like energy and transport policies.
“Look at the high cost of bills paid to our foreign owned energy firms that subsidise the bills of our competitors.
“Steel is an ideal commodity to be transported by rail. One of the mills where I work was even set up to be able to use canals. And yet, most steel is transported by road. Hardly the most efficient, cost effective or greenest option.
“Amongst the gloom, however, there is one beacon of hope.
“Sheffield Forgemasters. They’re thriving. And the only difference between them and the others, and make of it what you will, is, they’ve been nationalised.
“Save our steel.”
It also raises broader questions about the UK’s long-term industrial strategy, particularly the extent to which domestic steel production is being prioritised in public infrastructure and defence supply chains.
Supporters of the inquiry say it would clarify whether the industry’s current trajectory is reversible or whether further intervention will be required to preserve remaining capacity.
Opponents of heavy state involvement in the sector argue that market conditions, rather than policy failures, are the primary driver of change, and caution against interventions that could distort competition or impose additional costs on taxpayers.
However, union figures insist that steel is a foundational industry that cannot be left solely to market forces, pointing to its importance in construction, transport and national infrastructure projects.
The GMB said the issue would remain a central focus at its congress, as pressure continues to build on ministers to set out a clearer long-term plan for the future of UK steelmaking.
With global demand shifting and energy costs remaining volatile, delegates warned that time to act is narrowing, and that without decisive intervention, Britain risks further erosion of its remaining steel production base.
Leave a Comment