The UK Government has finally unveiled it’s the UK’s Modern Industrial Strategy a 158-page document setting out an ‘unashamedly’ long-term vision for UK industry.

It presented an ideal opportunity for the Government to reinforce the role of the metals recycling industry as a critical industry for the long-term prosperity of the UK. Unfortunately, this recognition was lacking, not least when it comes to energy costs. 

The Strategy identified those sectors that will either benefit from an extension to the British Industry Supercharger Scheme or from the new British Industrial Competitiveness Scheme from 2027 onwards. However, as it currently stands, the metals recycling industry will not benefit from the former and will not know whether it will benefit from the latter until a two-year consultation period has concluded.

Yet, for metal recyclers, UK electricity prices currently act as a major deterrent to further electrification and puts them at a disadvantage compared to their European counterparts. Recycled metal is a traded on an intensely competitive global commodity market, so it is not possible to pass the higher electricity costs onto customers – UK’s metal manufacturers.

The UK Government could have gone further on 23 June by adding the metals recycling industry and recycling sector to the list of key sectors which will benefit from Government support. These measures would lower costs across the entire metals value chain, giving key UK sectors the best possible chance of success.