Welsh Liberal Democrats Call for Urgent Action to Save Welsh Steel Ahead of the Budget

• Welsh steel firms pay around 40% more for electricity than competitors in France and Germany, with promised Government support now delayed until 2027.
• EU tariffs could hit Welsh exports as soon as next year, threatening jobs not only at Port Talbot ahead of production recommencing, but also at Celsa in Cardiff, Shotton in Deeside, Trostre in Llanelli and Llanwern near Newport.

• Welsh Liberal Democrats set out a Four-Point Plan to save Welsh steel — cutting energy costs now, rebuilding trade with Europe, backing clean British-made steel, and fixing Britain’s broken industrial energy system for good.

The Welsh Liberal Democrats have called on the UK Government to take urgent action in the upcoming Budget to secure the future of what remains of Wales’s steel industry, warning that continued inaction is putting thousands more jobs at risk.

Following his visit to Port Talbot last week with Lib Dem Deputy Leader Daisy Cooper, Welsh Lib Dem MP David Chadwick said the Government’s delays on energy support, trade talks, and investment were “holding back one of Wales’s most important industries” at a time when global competitors are powering ahead.

The sector currently pays around 40 per cent more for electricity than steel producers in France and Germany. Although Ministers have promised to increase Network Charging Compensation from 60 to 90 per cent, the payments will not arrive until 2027, costing UK producers an estimated £14.5 million next year alone.

Mr Chadwick said next week’s Budget was “a defining test of whether Labour will stand up for Welsh steel or allow it to fade away.”

Port Talbot is due to start producing steel again in 2027, but with tariffs being introduced by the US and now likely by the EU, there are deep concerns for the future, even with the transition to electric-arc-furnace production. The threat of tariffs also hangs over Wales’s other remaining steel sites, including Celsa Steel in Cardiff, Shotton Works in Deeside, Trostre Steelworks in Llanelli, and Llanwern Works near Newport.

The Welsh Liberal Democrats said the crisis shows why the UK must rebuild a closer trading relationship with Europe, warning that “Labour’s silence on the single market and customs cooperation is costing Welsh jobs.”

The party has set out a Four-Point Plan to protect and rebuild the industry:

1) Cut energy costs now, not in 2027
Bring forward the rise in Network Charging Compensation immediately so Welsh producers pay fair, competitive prices for power. Every extra year of delay pushes more investment and jobs overseas.

2) Rebuild a strong trading partnership with Europe to protect Welsh exports
Strike a steel trade pact with the EU and US that preserves tariff-free access and maintains existing quota allowances. The Liberal Democrats have repeatedly called for a new customs-union-style arrangement with the EU. Without it, industry figures warn Welsh exports could fall by around 20 per cent, devastating remaining Welsh steel producers and their supply chains.

3) Use public investment to back British-made steel
Guarantee that major infrastructure, energy, and defence projects prioritise UK steel, keeping taxpayer money in the domestic economy and supporting the transition to green industry in Wales.

4) Fix Britain’s broken industrial energy system for good
Commit to a long-term plan to bring industrial electricity prices in line with Europe by decoupling clean power from volatile gas prices and investing in a major expansion of renewable generation in South Wales, including offshore wind and grid upgrades around Port Talbot.

Commenting, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said:

“The men and women at Port Talbot have done everything asked of them to modernise and adapt, yet Labour (and the previous Conservative Government) have failed to act on energy and trade, forcing Welsh steel to fight with one hand tied behind its back.

“We also cannot save Welsh steel while cutting ourselves off from our biggest market. The Liberal Democrats are clear: we need a closer relationship with the EU, including a new customs arrangement, to keep trade flowing and protect jobs. Signing a steel deal with the EU must happen now.

“This Budget is Labour’s chance to prove it will back Welsh jobs with real action, not warm words. Our message is simple: cut costs now, secure trade with Europe, and invest in a green Welsh-steel future.”

ENDS