Recommendation 20

The government published its steel strategy in March 2026, aligned with its ten-year industrial strategy, setting out ambitions to increase the competitiveness of the UK steel sector, with an aim to increase the share of UK steel demand met by domestic production from around 30% in 2024 to 40% to 50%.57 The target date for achieving the increase of domestic supply was not set out in the strategy, and the strategy did not therefore also set out the corresponding volume of steel that this equates to. The Department told us the steel strategy set out a clear plan for rebuilding the steel sector, increasing the share of domestic steel that is consumed in the UK, and how it will support a clean, modern steel sector.58 The Department said the steel strategy makes it clear that electric arc furnaces are likely to be the future.59 The Department told us it was confident that it could deliver the strategy, but that many factors were unknown, and it was not clear on the funding that would be needed for every element of the strategy.60