Defence spending delays making future of South Yorkshire steel uncertain - Sheffield council motion alleges

The details have been revealed ahead of next week’s full council meeting

Councillors have tabled a motion that alleges repeated delays in the publication of Government defence spending plans have “threatened investment” in the region’s steel industry.

Liberal Democrat councillor Martin Smith is set to put forward the motion calling on further support for South Yorkshire’s steel industry at next week’s full council meeting.

In document’s published ahead of Wednesday’s (June 24) meeting, the motion details how the steel industry has remained a backbone of Sheffield’s economy and could continue to grow as companies like Boeing and Rolls Royce move into the Advanced Manufacturing Park in Catcliffe.

It adds: “The steel industry is still key to Sheffield’s economic success.”

Councillors may call on the Government to reveal defence spending plans as motion claims the Government has had a "slow and confused approach to the steel industry in South Yorkshire"placeholder image
Councillors may call on the Government to reveal defence spending plans as motion claims the Government has had a "slow and confused approach to the steel industry in South Yorkshire" | National World

Considering these factors, coun Smith’s motion calls on councillors to better work with the Government in securing defence contracts for local steel manufacturers, adding: “Advanced manufacturing and defence related opportunities, especially apprenticeships, should play a role in the council’s Employment and Skills Strategic Plan.

“We should support local companies in maximising opportunities created by the Government announcement of preferment of British companies in the procurement of defence contracts.”

Sheffield Forgemasters and Speciality Steel already manage defence contracts, while in the Government’s steel strategy - released in March this year - they confirm that public contracts will focus on domestic steel, however acknowledges that “imports will always play a vital role in our supply chains.”

South Yorkshire was also selected as one of five regions to benefit from the £250 million Defence Growth Deal in 2025, with the UK steel plan explaining: “South Yorkshire was chosen as it is already home to research, development and engineering of high-grade components and materials critical to the next generation of maritime, land and air capabilities.

“This includes specialist steel for gun barrels and nuclear submarines.”

However, this latest council motion argues that ongoing uncertainty around the country’s Defence Investment Plan (DIP) is making the future of local steel uncertain.

John Healey, MP for Rawmarsh and Conisbrough, recently resigned from his position as Secretary of State for Defence due to conflicts over DIP, arguing it “falls well short" of what is needed, with Barnsley North MP Dan Jarvis taking his position.

Details of the DIP have yet to be published, despite being expected last autumn.

Coun Smith’s motion call on the council to acknowledge that: “The delay in publishing the DIP has threatened investment and stifled job growth in related sectors.”

Former defence Secretary John Healey during a tour of Sheffield Forgemasters. Credit: Oli Scarff/PA Wireplaceholder image
Former defence Secretary John Healey during a tour of Sheffield Forgemasters. Credit: Oli Scarff/PA Wire | Oli Scarff/PA Wire

If approved, the council would call on the Government to provide greater clarity on their investment plans and how they will support South Yorkshire’s steel industry.

It is written on the agenda that the proposal resolves councillors to: “Condemn the continuous absence and delay from the Government over publication of the DIP; condemn the Government’s slow and confused approach to the steel industry in South Yorkshire; call on all councillors to unite in supporting advanced manufacturing in Sheffield and South Yorkshire; and ask the Chief Executive to forward a copy of this motion to the new Secretary of State for Defence.”

The motion will be argued at town hall next week.

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