Following Rachel Reeves’ instruction for ministers to ‘buy British‘ in four critical industries (shipbuilding, steel, AI and energy) earlier this week, here are thoughts of Paul McFadyen, Chairman at metals4U, the UK’s biggest online specialist metal supplier…
Paul explains in depth that the sector doesn’t just need supportive language or procurement ‘guidance’. It needs a proper policy framework in place, with clear rules that buyers across the public sector are expected to follow and can be held accountable for.
“Rachel Reeves instructing ministers to prioritise British firms as part of government contracts is another important step in the recovery of the UK steel sector, an industry which has struggled in recent decades, but is now showing signs of a return to stability.
“This latest update provides yet more positive momentum for the industry, and follows the recent announcement of new steel tariffs and reduced import quotas from 1st July.
“However, recovery of the industry is still fragile. As well as industry guidance and supportive language, we need to see a formalised policy framework with clear rules that buyers across the public sector are expected to follow and be held accountable for, with wider industry encouraged to do the same.
“For years, British steel producers have struggled to compete with the large volumes of cheap steel being produced overseas, and have had to contend with higher energy costs, uncertainty in levels of demand and less protection than many international competitors.
“For us to see genuine improvement and rebuild the British steel sector, public procurement must play a central role. Steel underpins some of our key industries including manufacturing, construction, defence and national infrastructure, and procurement should not be about simply sourcing the lowest cost option.
“A ‘Buy British’ approach must give UK steelmakers and the wider supply chain the confidence to invest, improve material availability, expand capacity and support skilled jobs. We need to see backing not just for major producers, but for the whole supply chain.
“It’s not about removing Britain from global trade, but more about recognising the domestic steel industry as a strategic asset that needs to be supported by the government and wider industry. Government incentives such as business rate cuts for companies prioritising domestic steel could offer commercial buyers a genuine reason to buy British, without needing to implement further restrictions on trade.
“This new government direction is certainly a positive step in the right direction for the recovery of the steel industry, but unless the guidance becomes an enforceable procurement policy, it risks being another well-intentioned announcement that fails to change buying behaviour. Only then will we see the UK steel sector become a self-sustaining industry.”
Last month, Paul wrote another informative article on Buildingtalk regarding the EU Commission prioritising a trade deal with the United States over the UK – to read that, click here.
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