Sarah Jones MP: speeches

Speeches

• 12 Apr 2025 · Steel Industry (Special Measures) Bill · Hansard source

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  My hon. Friend is right that procurement has a key role to play in our industrial strategy in steel and beyond. We are working with colleagues in the Cabinet Office to ensure that that is the case. I speak to the hon. Member for Brigg and Immingham (Martin Vickers) about these issues regularly, as does the Secretary of State—

• 12 Apr 2025 · Steel Industry (Special Measures) Bill · Hansard source

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  I thank hon. Members on both sides of the House not just for participating in this debate, but for returning to this place in these exceptional circumstances. There seems to be some debate about it, but I think this is the sixth time since the second world war that we have met on a Saturday, and only the second time that the House has been recalled on a Saturday—the other being during the Falklands war. Before I respond to Members’ comments, I echo the point made by my right hon. Friend the Secretary of State in his opening remarks: this Government will never hesitate to protect our steel industry and the thousands of steel workers in this country who built it. We always said, from the outset of our negotiations with Jingye, that we would keep every option on the table and would act in the national interest to protect jobs. UK-forged steel built our railways, bridges and buildings. It is integral to our economy’s future, just as much as it has been to our rich industrial past. That is why we need to pass this legislation today. I will try to address as many of the points raised as I can. Members made the argument for British Steel. My right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) pointed out that 95% of Network Rail steel is from British Steel. My right hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott) pointed out that TfL would not get anywhere were it not for steel. My hon. Friend the Member for Stockton North (Chris McDonald), who has such expertise, pointed out that steel is the future and everything we have is made from or with steel. I can reassure the House that our plan for steel—the £2.5 billion that we committed to in the manifesto—will work to break down the trade barriers that we have on steel, consider the all new technologies that we can introduce, and look across the whole of the UK to ensure that we protect steel everywhere.

• 12 Apr 2025 · Steel Industry (Special Measures) Bill · Hansard source

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  In the first 10 weeks after coming to power, this Government negotiated a better deal on Port Talbot and delivered a £200 million commitment to secure the future of Grangemouth. We acted last week on the zero emission vehicle mandate to secure our automotive industry. We are acting today to save the workers of Scunthorpe. The Government believe in direct action—in an active state securing the future of our industry across the UK. My hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) raised trade protection issues. I want to reassure her that we will ensure that the right trade protections are in place for our steel industry. Concerns were raised about future decisions about moving towards nationalisation and whether we would come back to this place. I can reassure the House that we will come back to this place if are any further matters relating to ownership or otherwise. We will keep the House updated. Concerns were raised about the “reasonable excuse” part of the Bill, and examples were requested. The “reasonable excuse” clause could include physical inability, illness or accident, and it is reasonable and measured in this case. Many hon. Members talked about China. We are focusing on this company today; we are not focusing on the nation of China. The Bill is about what has happened with British Steel and what this Government are going to about British Steel. I would not want this House to believe that the policy of this Government is anything other than a belief in free and fair trade, and that includes with China. Turning to the sunset clause amendments that have been tabled and the suggestions during the debate that those measures should be included in the Bill, I reiterate what the Secretary of State explained about the risk of a hard backstop reducing our leverage, which was why we did not include a sunset clause. However, we have heard the House’s concerns. I confirm that we will repeal the legislation as quickly as we can and that we will involve the Select Committee. I also make this pledge to the House: we will update the House regularly and the Secretary of State has committed to do so every four working weeks. I hope that that will give the House reassurance.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I thank my hon. Friend for her question and for pointing out that the uncertainty that has existed for many years is difficult for people, and that if they can secure jobs elsewhere, they will do that. I have been to Scunthorpe and talked to people who work there and to the trade unions a lot, as she would expect, to make sure that we understand all the issues at play. I understand my hon. Friend’s question about what we may or may not do in the immediate term, but I hope she will respect the fact that we cannot at this point talk about what we might end up doing, because those conversations are commercially sensitive. I want to reassure her, and the whole House, that we are doing what we can to ensure we get the right solution and that we do not want the blast furnaces to close.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I thank the hon. Gentleman for securing this urgent question and for his comments. I know we will continue to talk and have honest conversations. Jingye is very much talking to us. As I said, I met Jingye with the Secretary of State and others on Friday, and we hope to do so again this week. Our priority is respecting the workers, safeguarding jobs and retaining steelmaking. We have been clear in our belief that the best way forward is for Scunthorpe and British Steel to continue as a commercially-run business with private investment and with the Government acting in support, but I can tell the hon. Gentleman that no options are off the table.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  My hon. Friend is absolutely right, and we talked about exactly that at the Business and Trade Committee. This country has seen a significant decline in steel manufacturing over the last decade, and we want to turn that around. Long before we got into government, we committed to a plan for steel, which represents a £2.5 billion investment in UK steelmaking. As we speak, there is a roundtable at JCB in Stafford on the plan for steel, on this occasion discussing trade barriers—I was due to be chairing but came back to be in the Chamber. We have been having a series of roundtables to gather evidence and pull the facts and figures together so that we can put the right investment in place.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  As I said about 10 days ago, economics and jobs, not ideology, will drive the decisions that we make. The hon. Member is right to point to lots of speculation about the need to buy raw materials. I assure him that we are having those conversations with British Steel, and we will continue to do so. As I said, our preference is for a commercial solution, with Government providing support, but all options remain on the table, and I can assure him that we are working at pace.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  We are very much planning not to make the mistakes that my hon. Friend talked about. We do not want the blast furnaces to shut—that remains the Government’s view—and we will do everything we can to reach a deal with British Steel to protect workers and secure those jobs and the production of steel in the long term.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  British Steel is a private company owned by Jingye, and it is for Jingye to make its own decisions. I have said multiple times that we will continue to talk to see if we can come to an agreement on the very generous offer that was made. We are looking at all options, because we know that is the right thing to do. To be clear, we do not want the blast furnaces to close, and we want to come to an agreement.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I am afraid I have to disappoint the right hon. Member, as I am not on the verge of anything. I repeat what I said, because it is the right thing to do: we will continue to negotiate with British Steel, mindful of the workers and the insecurity of the consultation they are currently undergoing. We will ensure that we do the right thing through our plan for steel and our response to British Steel, and I cannot say any more than that at this point.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I appeared before this House on 27 March, just moments after British Steel’s devastating announcement of early asset closures at Scunthorpe and its commercial decision to consult on large-scale redundancies. The course of action chosen by British Steel’s owner is deeply disappointing, and our thoughts remain with British Steel workers and their families at this very concerning time. Government’s contingency plans have kicked in, and teams from the Departments for Work and Pensions and for Education are there to provide support and advice to affected workers. We will ensure that support is in place for as long as possible. Looking ahead, I can assure this House that early blast furnace closures at Scunthorpe are far from a done deal. We have been clear that the best way forward is for British Steel to continue as a commercially run business with private investment and Government acting in support, which is why we made the company a generous offer of public funding on 24 March. As Members are aware, British Steel’s owner did not accept our offer or the necessary conditions attached, which were designed to protect workers, safeguard taxpayers’ money and deliver a sustainable company at the core of the future of British steelmaking. However, that is not the end of the matter. The Business and Trade Secretary and I met Jingye, the owner of British Steel, on Friday, and there are plans to meet again this week. The Government remain resolute in our desire to secure a long-term future for the Scunthorpe steelworks, retaining steel production and putting an end to the years of uncertainty, and I can assure the House that no options are off the table to achieve that. We will continue to work tirelessly across Government and with British Steel’s owner to find a better outcome. I cannot go into further detail at this stage. It would be damaging to British Steel’s workers and their families, the company and its supply chain for me to speculate on how events might unfold in the coming days and weeks while a live negotiation is under way and policy is being developed at pace. However, Members should be in no doubt that there is a bright future for steelmaking in the UK under this Government, and we believe that British Steel and its superb workforce at Scunthorpe have an integral role to play in it.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  If we get into conversations about different types of steel, it is like the Facebook update “It’s complicated”, right? It is complicated. For some things, we absolutely need primary steel; and for some things, we do not. That is why we are carrying out a fundamental review of steelmaking and the need for it here in the UK. Those results will come out soon. The right hon. Member is right that the GMB has been an advocate for this, as have Community and Unite. We talk to them regularly about British Steel. I have not failed to notice the slightly odd position that we find ourselves in today. I repeat that we are looking at all options. The House will understand that we are talking about large amounts of taxpayers’ money, which we have to spend in the right way, in a sensible way, and in a way that will get us what we need. That is what we are looking at, and it is what we will do.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I will repeat what I have said: we are looking at all the options on the table; we are talking to British Steel about the right outcome; and we will do what is right for our country and our industry. On energy prices, the hon. Member is right to raise the high costs of energy. The supercharger comes into effect this month, and British Steel will get support from that, as will other high-end energy-intensive industries. But he is right to point to that issue and we are looking at it.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  If only the hon. Member had done something when he had some influence as an adviser to a previous Prime Minister. That would have been good, wouldn’t it? I was not sent here to divulge commercially confidential conversations with a private company that affect thousands of people’s jobs, and if the hon. Member thinks that I was, he is wrong. We are not going to do that, nor are we begging anywhere for anything—

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I can reassure the hon. Lady that we are developing a long- term plan in the industrial strategy. We are developing the plan for steel, as I have said, and alongside that we have our trade strategy, which has become very significant in recent times. She is right to point to the tariffs that have been placed on steel and aluminium. This is a deeply difficult situation and I have met the steel sector on multiple occasions to talk about it. That is what the conversation that is happening in Stafford as we speak is about: what extra measures need to be put in place. The Secretary of State met the Trade Remedies Authority this morning to push on some of the issues around trade protections. The hon. Lady talked about the SME manufacturing supply chain. Of course that is very important and we will do what we can within the industrial strategy and the steel strategy to support those businesses. I understand that the speculation about what may or may not happen at Scunthorpe is deeply distressing, not just to the workers and their families but to all those who are part of the supply chain. That is why we will continue at pace to have the conversations we need to have with British Steel to ensure that we do the right thing, and as I said, nothing is off the table.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I thank the hon. Gentleman for his question. We of course continue to talk to the trade unions, including Community, GMB and Unite, who have been incredibly strong voices for their workers in Scunthorpe. We will continue to talk to them and to people who work there, to understand exactly what they are going through. They have to be at the heart of all the decisions we make.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I would be happy to come to my hon. Friend’s constituency to have a look at and to talk to some of the people who work in the steel business. Huge numbers of organisations and businesses across the country rely on, use, and produce things from steel, and we need to ensure that we factor them into the conversations we are having. We are looking at the supply chains and how we boost industry more widely through our industrial strategy. We are looking at all the things—whether it is skills, R&D or access to finance—that businesses of all sectors have told us they need. Whether it is through the industrial strategy or the plan for steel, we are trying to ensure that we have a robust industry in this country so that jobs are not offshored and we have the security of knowing that we are producing the things that we need here in the UK.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I agree with the right hon. Member that the world has changed. We know that we are in a different position than that which we found ourselves in a few years ago. We need to ensure that we are secure as a country, and I believe steel is part of that answer. We also need to ensure that we are stopping the decline of the steel industry, which was always the Labour party’s wish in opposition. We are committed to the plan for steel—the £2.5 billion on top of the £500 billion that we are giving to Tata Steel in Port Talbot. This is a real commitment to changing how we operate the steel industry in this country, so that we stop this constant decline and start to grow the industry and ensure that we are producing the things we need.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  No, absolutely not, and I am disappointed that the hon. Member would speak in that way. As he knows, we are having a conversation about a potential deal that we believe is there to be done with British Steel. On the wider issue, it is a fact that China produces 53% of the world’s steel, and we have huge issues with that, as the hon. Member knows. The tariffs have over-complicated the situation, which is why the Secretary of State is meeting the Trade Remedies Authority today, why we are looking at our trade strategy, and why we are talking to the Americans to make sure we can do a deal with them. We will continue to ensure that we have all the protection we need, in terms of stopping the onshoring of steel as much as we can. Those conversations will continue. The TRA is now looking at steel, and we expect those results quite soon.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  It is good to hear that the workers in British Steel do not want visits from politicians; I assume the hon. Member, and his party, will take his own advice. I hope that he will understand that we cannot talk about the conversations that we are having with British Steel. It would be very disruptive to the process, the workforce there, the supply chain and commercial confidentiality. I can only repeat that our preference is that we come to an agreement with British Steel based on commercial terms, with Government support, but we are looking at all options and nothing is off the table.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  That is what we were telling the previous Government for many years. British Steel is owned by a Chinese company because the purchase was made under the last Government in a commercial and private sector way. Labour Members believe in fair, open markets; I do not know quite what the Opposition are becoming. On China, our priority is UK jobs and steel production. We believe in a fair, open market for foreign investments, and in having mature and balanced relationships with trading partners such as China. We will ensure protections for the steel industry in the UK, and make sure we do the right thing. On primary steel and the materials that the hon. Member wants me to commit to spending millions of pounds on, I think most Members would understand that I cannot commit to anything like that at this time and place.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I agree with the hon. Member’s premise that we need to ensure that we have steel production in the UK, although there is some nuance around some of this. High-quality steel is being made, as we speak, for defence purposes by electric arc furnaces. That is perfectly possible; we melt scrap and add about 20% of primary steel. For some things, depending on what we are making—I know too much about the steel industry now—we do not need any primary steel. We are conducting a review of primary steel, which will be finished shortly. Again, neither Tata nor British Steel is a critical supplier to defence programmes at the moment, but we need that steel production, as I said before, so that we can build whatever we might need in the future. Of course, we will work cross-party; if that is his offer, it is very gladly taken.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  My hon. Friend is right, and we will do that. The offer that was put to British Steel and which was refused included conditions to do exactly that, as well as including a number of other things around jobs, as we would expect. It is very important that any deal using British taxpayers’ money is done in a way that we know is within the law and is a good use of taxpayers’ money. I am very mindful of that, and I am constantly mindful of the insecurity that people who work at British Steel will feel, as well as the need for all of us to try to work as hard as we can to ensure that we get a good outcome for those people.

• 7 Apr 2025 · Scunthorpe Steelworks · Hansard source

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  I thank the hon. Gentleman for his contribution and for welcoming the Prime Minister’s announcements today on the zero emission vehicle mandate and the changes we have made to support the automotive industry, which is incredibly important. The hon. Gentleman talks about the number of good steel jobs that have gone forever or are at risk, but that happened because the previous Government failed to intervene to support our steel industry. That is why we lost so many jobs over the last decade. Not having an industrial strategy or a plan for steel meant that we allowed offshoring of our jobs in the steel sector, which has damaged us. He rightly said that in many key parts of our country we need good jobs. I should say that steel produced really good jobs, which are better paid than the average in the area and are done by really good, qualified people we want to retain in the UK. The hon. Gentleman talked about energy. Again, the reason why we are here is that we had years of the previous Government not intervening in this space. We are well aware of energy prices in this country and are doing all we can to bring those down. [ Interruption. ] I was asked by the hon. Gentleman to redouble my efforts in the negotiations we are having with British Steel. I will do everything that I possibly can—as we are doing. I hope he understands that I cannot go into detail about the state of those negotiations because that would be bad for the workers, bad for our supply chains and bad for the outcome. The hon. Gentleman talked about national security and primary steel. We are conducting a review of primary steel as part of our plan for steel and we will have the results of that soon. We will look at those results and see what we need to do. I should stress that there is defence equipment made in the UK from electric arc furnaces; there is not much defence work either in British Steel or at Tata in Port Talbot at the moment. People such as Sheffield Forgemasters produce steel from electric arc furnaces. However, the hon. Gentleman is right to talk about the importance of national security and to say that the world has changed and things have moved on, so we need to ensure that we are protecting our country as we need to. As I said in the Chamber in response to the last urgent question on this issue, there is a reason why Putin bombed the blast furnaces in Ukraine pretty much first: it was because a country wants to have that steelmaking capacity. We are alive to those issues, and that is why nothing is off the table. We are doing everything that we can.

• 27 Mar 2025 · Scunthorpe Steelworks · Hansard source

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  My hon. Friend’s constituents who work for British Steel will, of course, be deeply worried. When I was last there in February, I talked to workers, the unions and management. This is a proud industry of good jobs with good salaries compared with the local averages. I am well aware of how anxious those workers will be feeling; I hope they can take some comfort, at least, from the fact that we are doing absolutely everything we can to secure a deal with British Steel.