Political Pressure Mounts to Restart Idled Scottish Steel Plant

Scottish Steel 

UK Prime Minister slams SNP over Dalzell mill stagnation amid £100m British Steel bailout

The fate of Scotland’s Dalzell steel plate mill has taken center stage in the UK’s political arena following the UK government’s recent intervention to stabilize British Steel. Prime Minister Keir Starmer criticized the Scottish National Party (SNP) for lacking an “industrial strategy” to revive the idle facility.

In an op-ed in The Sunday Times, Starmer described his reaction as “horrified” over the mill’s continued dormancy. He urged Scotland's First Minister John Swinney to prioritize restarting the Dalzell plant, which has remained idle despite a 2016 Scottish government-backed rescue deal transferring Dalzell and Clydebridge from Tata Steel to Liberty Steel, accompanied by a £7 million ($9.2 million) loan.

Dalzell’s Strategic Role in Offshore Wind and Defense Overlooked

Dalzell's workforce has been furloughed at 80% pay, with no full accounts filed since 2019, per Companies House. The Community union released a report earlier this year advocating for urgent investment to align Dalzell’s capabilities with rising offshore wind and defense sector demand for steel plate.

Community assistant general secretary Alasdair McDiarmid welcomed the Prime Minister's comments:

“This is a site of huge strategic importance... Dalzell could help meet the burgeoning steel plate demands of the offshore wind industry and the UK defence sector.”

National Industrial Strategy Becomes Election Battleground

With the Holyrood election looming in 2026, Starmer’s Labour party aims to unseat the SNP by highlighting stalled industrial assets like Dalzell. Comparisons with the £100 million taxpayer support provided to British Steel’s Scunthorpe site have added fuel to the political debate.

In 2024, Lib Dem MSP Willie Rennie warned that Dalzell was “teetering on the edge,” urging the UK government to intervene.

The spotlight on Dalzell underscores a wider debate on the UK’s strategic metals infrastructure and its alignment with clean energy and national defense goals.