Various stakeholders are eagerly awaiting the Autumn Budget on 28th October. It will be the first one under Prime Minister Andy Burnham, with John Healey as Chancellor. There is hope it will mean more support for key industries. UK Steel is proposing the Government focus on four priorities. Let’s have a closer look to see how they could improve steel production in the UK. Then, if you want to order ERW tubes for different projects, you can rely on us.
Ultimately, UK Steel wants the Government to act to improve the industry. This will support the Government’s earlier target to increase the use of home grown steel. Currently, we import 70% and only use 30% domestic. The aim is to improve this to 50%, with particular support for use in infrastructure and construction.
Electricity
The first priority according to UK Steel is to make wholesale electricity prices more affordable. This is an area that hamstrings many British businesses. They are often at a competitive disadvantage because they pay more than competitors in other countries. So, the proposal is to introduce a price rebalancing scheme to reduce prices and improve competitiveness.
Investments
One of the things that has plagued the British steel industry for decades is underinvestment. Sadly, we’ve fallen behind numerous countries in terms of our steelmaking capabilities. The Government previously said they will commit to investing £2.5bn. UK Steel wants to see the creation of an investment fund to give domestic manufacturers access to the funding. Speak to us if you need ERW tube.
CBAM
The UK Government has been working on a carbon border adjustment mechanism (CBAM) since 2023. The goal is to tackle carbon leakage. It will come into force on 1st January 2027. However, there are concerns about the impact. UK Steel is warning it should support domestic steelmaking, ensuring it doesn’t undermine it.
Scrap
Finally, UK Steel is calling for action to improve scrap processing. It’s a significant resource today, vital for creating new steel. Recycling old metals is fantastic for the environment too. However, it must be high quality or it can have a significant impact on the new products. In the worst cases it can compromise the chemical composition and key characteristics like strength. So, we need to improve our capabilities here and ensure manufacturers have easy access to quality materials at great prices.
Rely on us if you want high quality ERW tube
Union Steel Tubes is one of the best suppliers in the UK, building a great reputation over the last few decades. If you need tube, you can rely on us every time. We’ll always work to support your business and ensure you get the best results.
So, get in touch today if you want ERW tube for any projects. We’re happy to help, sharing our expertise.
