Business
UK Steel Industry Calls for Government Support in Offshore Wind Power Projects
The UK steel industry is urging the government to commit to using British-produced steel in the country’s expanding offshore wind sector. Despite wind energy now accounting for nearly a third of the UK’s electricity generation, less than 2% of the steel used in offshore wind projects over the past five years has come from domestic mills, according to consultant Lumen Energy & Environment.
A new government steel strategy is expected to be released this spring, spearheaded by Business Secretary Jonathan Reynolds. The strategy aims to expand the UK’s steel manufacturing capacity, addressing challenges including the rising costs of decarbonisation. Gareth Stace, chief executive of UK Steel, has called for prioritising British-made steel in offshore wind projects, suggesting it would strengthen domestic supply chains and offer broader economic benefits.
Demand for steel in the UK’s offshore wind sector is predicted to exceed 1 million tonnes per year between 2026 and 2050, with a peak of more than 2 million tonnes annually. This represents a significant increase from the current 300,000 tonnes used each year. However, the majority of this future demand will be for plate steel, which is not produced in large quantities within the UK. Industry leaders have said that investment in new facilities to meet this demand depends on government policies that prioritize local manufacturing over imports.
Stace argues that such policies would not only help reverse the decline of the UK steel industry but also incentivize steelmakers to invest in the sector. He has called on the government to consider British steel as the default option in public procurement decisions. “Using British steel would ensure that large-scale spending remains within the UK economy, creating jobs and boosting local manufacturing,” he said.
The government has already committed to supporting the domestic steel industry, with a £2.5 billion support package. This funding is intended to help projects like replacing traditional blast furnaces with electric arc furnaces at plants in Port Talbot and Scunthorpe. However, there are still significant challenges, with factories in Newcastle and Teesside assembling turbine components and building monopiles that rely on imported steel. This underscores the need for a cohesive industrial strategy that strengthens the UK’s steel production capacity.
As the UK’s offshore wind industry continues to grow, industry leaders are calling for urgent action to ensure that British steel plays a central role in the country’s green energy future.
Business
Train Passengers Face Five Months of Disruption as RMT Announces Sunday Strikes on West Coast Main Line
Train passengers on the West Coast Main Line are facing up to five months of disruption, as the Rail, Maritime and Transport (RMT) union has confirmed a series of Sunday strikes set to begin on 12 January and run until 25 May. The strikes follow the rejection of Avanti West Coast’s latest pay offer, with over 80% of train managers voting against the proposal in a recent referendum.
Avanti West Coast, which operates high-speed services between London, the North West, and Scotland, has warned that the industrial action will result in “significant disruption” for customers. The company expressed disappointment over the vote outcome, claiming it had made a “very reasonable revised offer” to resolve the ongoing dispute. The dispute primarily concerns rest day working, particularly on Sundays, and a proposed “new technology payment” related to scanning electronic tickets.
The RMT, led by Mick Lynch, had suspended planned strikes just before Christmas after Avanti put forward a revised proposal. However, union leaders have now opted to resume and extend the industrial action, citing the company’s failure to deliver a fair deal. The core issue remains the company’s request for guards to work on rostered rest days, including Sundays, to cover staffing shortages and prevent timetable disruptions.
Avanti, which has been under fire for poor punctuality, was the worst-performing train operator between July and September, with only 41% of services arriving on time, compared to a national average of 67%. Despite this, the franchise narrowly avoided nationalisation after reporting some improvements. However, it continues to face scrutiny from the government, which ultimately controls its funding.
Industry observers suggest that the RMT may be leveraging its position to secure a more favorable deal from the Treasury, given Avanti’s heavy reliance on public funds. The union’s decision to escalate the dispute with five months of planned strikes highlights the ongoing instability in the UK’s rail sector, raising concerns for both businesses and commuters.
The strike action is expected to severely impact travellers on key routes, with long-distance services between major cities likely to be the hardest hit. As the dispute continues, passengers are urged to plan their journeys in advance and expect possible delays and cancellations.
Business
Women Who Work from Home May Miss Promotion Opportunities, Warns Nationwide CEO
Business
UK High Street Faces Record Job Losses Amid Economic Struggles
The UK high street has experienced its biggest annual job losses since the pandemic, shedding nearly 170,000 retail positions in 2024, as shops continue to battle with rising taxes, escalating costs, and weakening consumer demand.
According to data from Altus Group and the Centre for Retail Research (CRR), the total number of retail job losses this year has reached 169,395, marking a 42% increase from 2023. The ongoing strain has been highlighted by the high-profile closures of major retailers including The Body Shop, Ted Baker, Homebase, Carpetright, and Lloyds Pharmacy, all of which have struggled under the mounting economic pressures.
Joshua Bamfield, director of CRR, attributed the job losses to a combination of higher operational costs, inflationary pressures, and government caution regarding the economy, which has eroded consumer confidence and led to tighter household budgets. “Consumers are becoming more cautious, and retailers are feeling the squeeze,” Bamfield explained.
Retailers are now bracing for an even tougher 2025, with forecasts predicting that an additional 200,000 jobs could be lost as a result of new policy measures. Two key upcoming changes are expected to significantly impact the industry: a reduction in business rate relief and a sharp increase in employers’ National Insurance Contributions (NICs).
Altus Group estimates that business rates will rise by £688 million annually when the current 75% discount drops to 40%. Meanwhile, Chancellor Rachel Reeves’s plan to raise NICs from 13.8% to 15% and lower the threshold to £5,000 is expected to add further financial strain on retailers, particularly affecting part-time workers, who make up half of the retail workforce.
Recent data from the Office for National Statistics reveals that retail employment has fallen to 3.6 million, down from over 4 million in 2019. November’s retail sales volumes were also 1.6% below pre-pandemic levels, and Boxing Day footfall was nearly 5% lower than in 2023, according to MRI Software.
Despite these challenges, the Treasury has defended its economic measures, arguing that 40% business rates relief will remain in place for 250,000 properties, and a permanent lower rate will be introduced in 2026. The government also emphasized that over half of employers will either see no change or a reduction in their NICs bill.
As the retail sector faces continued adversity, the coming months will be crucial in determining whether these measures can help stabilize the industry or whether more significant disruptions lie ahead.
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