Steel union expresses fears over HS2 project

British trade union Unite has reacted with dismay after it emerged that the national High Speed rail infrastructure project, known as HS2, does not have any provision for the use of steel products made in the United Kingdom.

In July last year, the official budget for Europe's biggest building project was estimated to be 98 billion pounds ($132 billion), up from 33 billion pounds when it was unveiled in 2012.

It aims to provide faster rail connections for the Midlands and North of England, but has already undergone several redesigns significantly reducing its reach.

Across the UK, more than 1100 steel-making businesses employ 33,000 people, but when asked directly about it in Parliament in December, Transport Minister Andrew Stephenson said that there was "no formal target" for the use of UK steel in HS2's construction.

"The government must immediately develop clear targets on UK steel usage on publicly-funded construction projects," said Sharon Graham, general secretary of Unite.

"In the case of HS2, UK producers should have a paramount place in producing steel for the project. Surely that is economic common sense?"

HS2 was supposed to improve journey times from London to Birmingham in the West Midlands, and then on to Manchester and Liverpool in the North West. A branch line from Birmingham would go through the East Midlands, to Sheffield and Leeds in Yorkshire, with Manchester and Leeds being connected by a route called Northern Powerhouse Rail.

But in November 2021, the planned eastern branch was scrapped, as was the Manchester-Leeds link, to be replaced by upgraded existing services.

One of the key elements of Prime Minister Boris Johnson's 2019 general election victory was the Conservative Party's success in areas traditionally more likely to vote for the opposition Labour Party, known as the "Red Wall "seats. Many of these are in steel producing regions.

Unite's national officer for steel Harish Patel told the Business Live website that the lack of guarantees for British steel producers would go down very badly here.

"Steel is a key foundation industry and it is absolutely essential that it receives practical support from the government," he said. "That should start with ensuring that government-funded projects always purchase UK steel whenever possible.

"Steel workers throughout the UK, many of whom live in so-called Red Wall seats, will be alarmed and fearful with the government's inaction."

A Department for Transport spokesperson told the Guardian newspaper "the government and HS2 Ltd have engaged extensively with the British steel industry over the last five years to ensure that it is in the best possible position to compete for contracts".

The new year could see even tougher economic times for the British steel industry as European Union manufacturers will benefit from the lifting of sanctions following the easing of trade tensions with the United States, but as a result of Brexit, they will still apply to UK manufacturers.