Public sector 'must consider true value of British steel'

Public sector organisations will be encouraged to 'buy British' to help save the industry, the government said. Credit: PA

The government said all public sector organisations procuring steel will be encouraged to 'buy British' in an effort to help save the industry.
Public sector bodies, such as councils and NHS trusts, will be required to consider the social and economic impact on the UK before buying from abroad.
After a week in which the government has struggled to formulate a response to the decision by Tata to sell off its loss-making UK assets, ministers said they were taking steps to create a "level playing field" for British manufacturers.
Guidelines introduced last year requiring central government bodies to take into account the "true value" of British steel will be extended across the public sector.
The move came as a possible buyer emerged for the Port Talbot steelworks in South Wales, where thousands of jobs are at stake.
Cabinet Office minister Matt Hancock said: "When public bodies buy steel they must taking account of the true value of buying British."

By changing the procurement rules on these major infrastructure projects, we are backing the future of UK steel - opening up significant opportunities for UK suppliers and allowing them to compete more effectively with international companies.

– Business Secretary Sajid Javid

Angela Eagle said the government had been 'dragged kicking and screaming' to take action to support the steel industry. Credit: PA

The announcement came amid heavy criticism of ministers for failing to take more effective action to prevent the "dumping" of cheap Chinese steel, seen as one of the key causes of the crisis.
Shadow business secretary Angela Eagle welcomed the announcement but said ministers had to do more if they were to ensure the survival of the steel industry in the UK.

The government has been dragged kicking and screaming to take action to support the steel industry, which is a vital foundation industry and has descended further into crisis on their watch.

– Shadow business secretary Angela Eagle

Roy Rickhuss, general secretary of the Community trade union, said the announcement was "a small step in the right direction" but did not address the need for immediate action to secure the future of steelworks under threat of closure.
"Frankly, steelworkers will be shocked to discover that these measures were not already in place. These are bread-and-butter policies that should have been providing opportunities to UK steel producers already," he said.