Summary
The UK government has stopped plans to give cash grants for new steel projects, choosing instead to support loss-making steelworks. The government still plans to spend £2.5 billion on the steel industry, despite the change in funding strategy. Instead of grants, businesses can seek funding through the National Wealth Fund, which requires some private investment.
Key Facts
- The UK government halted plans to award cash grants for innovative steel projects.
- The decision was made to support struggling steelworks directly instead.
- The government intends to keep a promise to invest £2.5 billion in the steel sector.
- Businesses can still get funding from the National Wealth Fund, which requires private investment.
- The UK steel industry faces challenges like high energy costs, tariffs, and global oversupply.
- Maintaining steel production is viewed as crucial for national security.
- Four out of six major UK steel companies get financial support from the government.
- The EU's recent tariff increase on steel poses a threat to UK steelmakers.
