Steel industry fears more job cuts without help

The UK alloy manufacture has raised concerns that much jobs could beryllium chopped earlier immoderate authorities enactment for energy bills kicks in.

Gareth Stace, manager wide of manufacture assemblage UK Steel, said British Steel's determination to axe 260 jobs could beryllium the commencement of a inclination successful the sector.

The authorities has acceptable retired plans to trim energy costs for energy-intensive industries from adjacent year.

Electricity costs person soared for firms which marque steel, insubstantial and chemicals.

On Thursday, the authorities projected changes that it said would bring the vigor costs of the UK's energy-intensive industries successful enactment with those charged successful the world's different large economies.

Some 300 firms - which employment 400,000 workers - that marque steel, paper, chemicals and different metals basal to payment from the changes which would spot them exempt signifier definite costs and taxes.

Business and Trade Secretary Kemi Badenoch said the enactment would mean "UK industries similar alloy and chemicals stay competitory connected the satellite stage".

Making alloy requires a batch of energy, and with prices soaring successful caller months, the costs of making the metallic person besides gone up.

Steel manufacturers, however, are paying astir 60% much for energy than their counterparts successful different countries specified arsenic Germany, according to manufacture assemblage UK Steel, owed to added levies and c costs.

Mr Stace said the proposals from the authorities were "very welcome" and would spell a "long mode to bridging the gap" betwixt what UK steelmakers wage compared to competitors successful Europe.

But helium said the information that the proposals are acceptable to beryllium consulted connected successful the outpouring and are not being implemented consecutive distant was "particularly concerning".

"We mightiness spot our energy prices going down successful conscionable implicit a year's clip - well, conscionable implicit a year's clip is simply a agelong clip successful steel," helium told the BBC's Today programme.

He said helium feared that if determination was not a "competitive concern environment" successful the UK for the alloy sector, concern would dwindle and much announcements akin to British Steel's could follow.

Unions said the determination was a concerning indicator astir the wellness and aboriginal of the UK alloy industry, with the biggest steelworkers' national adding British Steel cuts could person a "catastrophic impact" crossed the UK.

The caller proposals travel aft the authorities extended an Energy Intensive Industries Compensation Scheme for a further 3 years and much than doubled its budget.

The strategy provides businesses with alleviation for the costs of definite levies successful their energy bills.