Reaction to Government's pledged support of Tata Steel
“Unfortunately the problems of UK steel are structural, not cyclical. With energy, labour and other production costs much higher than those in say China or Germany, it is very unlikely the UK steel industry is viable over the long term without a dramatic change in tax and energy policies. It is severely misguided of the government to gamble with taxpayer’s money in the hope that the industry will be revived against all odds.
“Instead of throwing money at the problem, the government should focus on how to reduce the cost of government policies that harm the steel industry – green taxes, for example – and empower communities affected by such economic change to adjust and move on to new economic sectors.”
Notes to editors:
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