I heard an interesting report on Radio Five last week from a Cambridge Professor explaining the core reason for Tata UK decline. With the Chinese housing market in steady decline of late, the country had already committed to manufacturing an agreed level of steel. The excess of which China exported into the EU (yes, to include the UK) at a price we could not compete with.
The below article does however allude to some other compelling factors as to Tata demise in these shores; not least the lack of foresight shown by the EU.
UK steel industry pay higher costs than competitors in the rest of Europe, paying 80% above the EU median for their electricity. An energy-intensive Industries Package was only put in place for them last year – too little, too late. However, Sajid Javid, the UK business secretary, explained how the government had been paying compensation for energy schemes such as feed-in tariffs for generating power. “We have so far paid over £23m to 12 companies, including Tata. We are continuing to rapidly work through applications and will be making further payments over the coming weeks. Our overall package of compensation and exemption will save the steel industry hundreds of millions of pounds over this parliament.” Business rates – UK steel companies claim to pay up to seven times more in rates than their European competitors.