The boss of a Gloucestershire-based range cooker manufacturer has urged the government to reconsider its steel tariff proposals, warning that rising costs and competitive pressures are threatening the industry.
Steel Tariffs Set to Take Effect
From July 1, the government will reduce its tariff-free quota on imported steel and double the tariff on imports exceeding that allowance. The policy aims to support UK steel producers, but manufacturers like Everhot argue it will backfire.
Guy Goring, managing director of Dursley-based Everhot, said the price of steel has already risen by around 30 percent ahead of the new rules. He explained that while Everhot prefers to use British steel, the sheet steel required is not produced in the UK at the necessary scale or specification.
“The proposed tariffs will only ensure UK companies can’t compete against European, US or Asian markets whilst encouraging imports from those same countries,” Goring said.
Impact on Manufacturing
Everhot, which operates a purpose-built factory in Gloucestershire, has experienced delays from stockholders that are affecting production timelines. Goring warned that the issue extends beyond his company, likely affecting manufacturers across sectors such as refrigerators and washing machines.
A Department for Business and Trade spokesperson said: “We want a thriving steel sector in the UK, which is why our new steel trade measure aims to strike the right balance between protecting domestic production and maintaining a secure supply.”
Energy Costs a Key Concern
Goring believes the government should prioritize reducing energy costs rather than offering niche discounts. “If the government is serious about supporting British steel and UK manufacturing… affordable electricity is fundamental,” he said. “Without it, the UK simply cannot compete with global markets that are built on access to low-cost energy.”
The DBT spokesperson added: “We fully recognise the challenges the sector is facing on the cost of energy, which is why our modern Industrial Strategy is cutting electricity costs for industries across Great Britain such as steel.”
Broader Industry Concerns
A report by manufacturers’ body Make UK found a growing number of British businesses are moving production overseas due to sector challenges. In April, the government announced electricity bill cuts of up to 25 percent for over 10,000 manufacturing firms through the British Industrial Competitiveness Scheme, which takes effect in April 2027 with subsidies backdated to this year.
However, Stephen Phipson, chief executive of Make UK, warned this may be too late for many businesses. “The time for talking is over. The time for action is now. Britain faces deindustrialisation unless manufacturers get relief from high energy prices,” he said.
