Some Opinions:
- Steel works have been priced out of business due to non-EU steel being a lot cheaper: as China supports their steel industry with high subsidies. This means it has been difficult to compete.
- EU regulations mean that manufacturing fixed costs in the UK are very high. In addition to this it is illegal for a nation within the EU to help any of their industries with subsidies (state aid).
- However, with this state aid, manufacturing jobs may be able to remain open and Sheffield could compete again. Ultimately it depends whether there is support for government intervention or not but it opens the possibility.
- Moreover, it could be approached with the view that the market prices could mean that the UK can’t compete or some may recognise the fact that the market isn’t a level playing field and support British manufacturing, and thereby create jobs.
- On the other hand, some may say that many industrial firms would move elsewhere so that they would not have to pay high import taxes to the rest of Europe.