Tata urged to expand steel production after Budget boost

It comes after changes announced in the Budget which means from next year steel-making will become exempt from the Climate Change Levy, a tax on energy use.

Wentworth and Dearne MP John Healey had called for the introduction of a “metallurgic process” exemption, by appealing directly to the Chancellor in October 2012.

He argued the exemption would help electric arc steelmakers like Tata in Rotherham, who are high users of energy, stay competitive in Europe.

Mr Healey told the Commons after the Budget announcement: “I have the honour of representing a steel area in Rotherham.

“Steel is one of this country’s strategic industries, and the Chancellor’s announcement will be very welcome in my constituency.

“It will help to secure the industry for the future, and I hope that it will also help to secure extra investment from Tata Steel.”

Mr Healey also called on the Government to do more to boost growth.