STORY
Government plans to double some steel import tariffs and reduce tariff-free quotas have prompted warnings from businesses and MPs about the possible effect on defence, aerospace and shipbuilding. The changes are due to begin on 1 July and are intended to protect domestic steel production.
Critics, including Liam Byrne, the chair of the House of Commons Business and Trade Committee, have warned that some downstream manufacturers depend on specialist steel products that are not made in the UK. Businesses have argued that higher costs could hit sectors involved in warships, nuclear submarines, aircraft and other strategic industries.
The Government has defended the policy as an attempt to balance support for British steelmakers with wider supply chain needs. Industry groups are calling for urgent changes before the measures take effect, warning that the policy could damage the competitiveness of firms employing hundreds of thousands of people.