Politicians trade letters again following new reports Teesside steelmaking plans set to scrapped

Tees Valley Mayor Ben Houchen and the region’s Labour MPs have once again exchanged letters following national reports of British Steel’s likely plans to scrap the return of steelmaking on Teesside.

Mayor Houchen wrote to Tees Valley MPs following reports in the national press that two proposed electric arc furnaces (EAFs) are now due to be built solely in Scunthorpe. Previously, the plan - always subject to “appropriate support” from the Government - was for one to be in Scunthorpe and the other to be in Teesside. A spokesperson for British Steel has said that no final decision has yet been made and negotiations are ongoing.

Ministers have spent the last year in talks with British Steel owner, Chinese firm Jingye, which has been seeking financial support to convert two polluting blast furnaces at its main Scunthorpe site into an electric one, while also establishing an EAF at the Lackenby works, near Redcar. The move is part of an effort to reduce greenhouse-gas-causing carbon output by as much as 70% and create a “green future” for the steelmaking industry.

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In a previous letter, sent to local MPs in December, following the first reports that the proposals for a Teesside electric arc furnace had been shelved, Mayor Houchen asserted that the “only viable option” was to build the first electric arc furnace in Teesside, “whilst supporting the blast furnaces in Scunthorpe to stay open during this process”. The mayor made the case that Teesside offers “approved planning permission, completed site remediation, and the required grid capacity”.

At the time, MPs did not respond directly to the letter, but instead released their own statement which accused Mayor Houchen of “play[ing] political games”.

Following the recent reports, Mayor Houchen once again got in touch with Tees Valley MPs, saying the news “raises serious concerns about the Government’s emerging deal with British Steel”. He added that if the decision of Scunthorpe serving as the sole location for EAFs is confirmed, it would be a “profound mistake” and increase “the time period in which the UK will be without steelmaking capabilities”.

He added: “In 2015, many of you were rightly vocal when SSI steelworks closed. Now, I urge you to act with the same determination. If the reports are true, I hope you’ll put Teesside above party politics and join me in fighting for our region’s future.”

The region’s Labour MPs responded on the same day, in a letter titled: “Teesside at the Heart of the UK’s Steel Future”. The letter was signed by the six Tees Valley Labour MPs: Anna Turley (Redcar), Andy McDonald ( Middlesbrough and Thornaby East), Chris McDonald ( Stockton North), Jonathan Brash ( Hartlepool ), Luke Myer (Middlesbrough South and East Cleveland), Lola McEvoy ( Darlington ).

The letter said: “This government sees steel not as a sunset industry to be outsourced abroad, but as a vital sector with a bright future at the forefront of low-carbon and green innovation.” The MPs highlighted that the “establishment of the £2.5bn Steel Council is a clear signal that Labour is serious about securing the future of steelmaking.”

The letter added: “We understand the Government’s determination to secure steel jobs in Scunthorpe through the Electric Arc Furnaces (EAFs). However, this is only the first step in a long-term plan to rebuild the UK’s steelmaking capacity. Teesside’s case for an EAF is incredibly strong, and we are committed to pushing for its inclusion in the next phase of the steel strategy.”

On social media, Mayor Houchen responded that the letter from Teesside Labour MPs was a “surrender” and that he didn’t expect the MPs “to lie down and accept” the Government’s plans to focus on Scunthorpe.

Anna Turley, one of the signatories of the joint letter and Labour MP for Redcar, also took to social media to discuss what she called the “truth about steel”. Ms Turley’s constituency would host the proposed EAF if it was to be built in Teesside.

She said: “Back [in 2015], we proposed EAFs here in Redcar to manage a transition and keep our steel jobs, but the Conservatives refused. They smashed our steel industry and then pretended to come in as white knights to ‘bring steelmaking back’, when the British Steel Teesside EAF was always a commercial decision that had never been signed off.

“This government is negotiating with the parent company Jingye to keep British Steel in the country altogether. It would be fantastic to have an EAF right away on Teesside as part of this, but protecting existing jobs both here on Teesside and across the country has to be the immediate priority.”

Matt Vickers (Stockton West), the only Conservative MP in the Tees Valley and the wider North East said: "Labour MPs in Teesside have shown their true colours with this disgraceful surrender letter. Instead of standing up for Teesside’s future and fighting for steelmaking to return, they’ve rolled over and accepted a government plan that places us at the back of the queue.

“It’s clear – their commitment to our region is nothing more than empty words. Teesside deserves more than vague promises about 'next phases' – we need action now, not false hope. These MPs are not representing our community, they’re prioritising Scunthorpe while turning their backs on Teesside."

A British Steel spokesperson said: “We are in ongoing discussions with the government about our decarbonisation plans and the future operations of our UK business. While progress continues, no final decisions have been made.”

When asked about the EAFs being located in Scunthorpe in the immediate future, the Department for Business and Trade said they would not be commenting on “speculation”. A spokesperson later said: “This government will simply not allow the end of steel making in the UK. That’s why we’ve committed up to £2.5 billion of investment to rebuild the UK steel industry and support communities now and for generations to come.

“We’re working across government in partnership with trade unions and businesses, including British Steel, to secure a green steel transition that’s right for the workforce, represents a good investment for taxpayers and safeguards the future of the steel industry in Britain.”

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