Government’s new Infrastructure Strategy offers opportunities for the steel sector

The UK Government’s newly announced Infrastructure Strategy has opened the door to significant opportunities for the domestic steel industry, with millions of tonnes of steel expected to be required across a range of public projects — including new nuclear capacity, regional transport upgrades, and the construction of schools and prisons.

The scale of investment is substantial. The Chancellor’s Spending Review included a £14.2 billion allocation for the Sizewell C nuclear project alone, a clear indication of the ambitious nature of the government’s infrastructure plans. For UK steelmakers, this represents both a challenge and a moment of potential growth.

Chancellor Rachel Reeves underlined her commitment to using UK-made steel in these developments, providing a strong signal of intent and confidence in the sector’s ability to deliver. The inclusion of steel in the government’s long-term public procurement plans offers a much-needed level of clarity for producers planning future investments and production strategies.

Ahead of the summer recess, the Government is expected to release a detailed Infrastructure Pipeline, which will help suppliers identify and align with upcoming opportunities. Still, industry leaders are calling for further steps to ensure these plans translate into lasting benefits for the steel sector.

Gareth Stace, Director-General of UK Steel, emphasized the need for a supportive policy environment:
“Where public money is involved, British contracts should buy from British steel firms, boosting thousands of jobs and supply chains across the UK. The Infrastructure Strategy and forthcoming pipeline means the steel industry can take full advantage of these opportunities.

“UK steelmakers are holding up their end of the bargain, working closely with the Government on reforms to the Policy Procurement Note for Steel and a digital steel catalogue to ensure procurement teams know what steel we make and where.

“To secure the success of our steel companies and the Government’s ambitions, the infrastructure plans must go hand-in-hand with competitive electricity prices, strategic domestic procurement and a new trade defence mechanism in 2026 to handle the influx of imported, high-emission steel.”

The broader economic and social goals behind the Strategy were outlined by the Chancellor in her recent speech:
“Infrastructure is crucial to unlocking growth across the country, but for too long investment has been squeezed. Crumbling public buildings are a sign of the decay that has seeped into our everyday lives because of a total failure to plan and invest.

“We’re not just fixing buildings – we’re enhancing public services, improving lives and creating the conditions for sustainable economic growth in communities throughout the UK. This will deliver the decade of national renewal we promised Britain, and fulfil our Plan for Change goals to kickstart economic growth, and build an NHS fit for the future.”

For the UK steel sector, the message is clear: a new era of public infrastructure investment is beginning — and British steel is expected to be at the heart of it.