'Madness' as Labour buys Chinese steel while UK plants struggle to keep the fires burning
Thousands of pounds of steel that could have been made in Britain was shipped in from China by the Government last year, the Daily Mail can reveal.Chinese products were among the £54million of foreign steel imported by Whitehall departments – sparking a furious backlash from industry experts.Use of Chinese steel at the expense of British firms was condemned as ‘madness’ by trade unions.The row came as Sir Keir Starmer jetted off to China yesterday in the first visit to the country by a British prime minister since Theresa May in 2018.Chancellor Rachel Reeves last year announced domestic steel would be prioritised for major state contracts.But analysis of last year’s steel procurement data – including Labour’s first nine months in office – showed that £30,000 of steel was imported from China even though it could have been produced domestically. Clanger: Chinese products were among the £54m of foreign steel imported by Whitehall departments – sparking a furious backlash from industry expertsThis included steel wire for HS2’s Old Oak Common high-speed railway station in West London, flat-rolled steel bought by National Highways for a project on the M1 motorway, and construction steel for two schools ordered by the Department for Education.An industry source said that although the amount is ‘small’, the ‘principle is important’ – particularly at a time when Chinese steel is flooding the global market, leaving UK companies struggling to compete.Earlier this month, the Daily Mail revealed 7,000 tons of Chinese steel worth £5million will be used for a taxpayer-funded £4billion green power plant on the site of the former Redcar steelworks.Chinese steel is understood to have been preferred to boost the Net Zero Teesside project’s green credentials because it comes from an electric arc furnace.This is despite no guarantee over how China generates the electricity used to make the steel, and despite it being shipped halfway around the world on diesel ships.Last weekend, The Mail on Sunday revealed how one third of the 293,000 tons of steel purchased by government departments at a cost of £374million in 2024-25 came from abroad.Highlighting the two reports, trade union Unite yesterday demanded that the Government introduce clear rules to ensure UK‑produced steel is used in all major projects.Unite general secretary Sharon Graham said: ‘It is madness that taxpayers are paying for Chinese steel at the expense of British jobs.’Reform UK deputy leader Richard Tice MP said: ‘It should be a critical part of public sector procurement to buy British-made steel unless it is not available. This woke obsession with green steel and other green products is destroying thousands of good, well-paid jobs and impoverishing great communities.’A government spokesman said: ‘We want to see more UK-made steel used in public projects.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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'Madness' as Labour buys Chinese steel while UK plants struggle to keep the fires burning
