Connect with us

Traffic & Transport

HS2 firm says new steel tariffs will ‘exacerbate’ cost pressures for UK construction industry | Construction industry

Published

on


One of HS2’s biggest contractors has warned the government that raising tariffs on foreign steel imports will “exacerbate” cost pressures for the UK construction industry, amid growing concern over the £100bn railway’s rising budget.

Ministers said last week they would double the tariffs on imported steel and slash the amount that can be bought from overseas, in an attempt to save Britain’s struggling steelmakers.

However, the move will also raise the cost of the metal, crucial for infrastructure projects such as HS2, at a time when an energy shock from the Iran war is already inflating steel and concrete prices.

Mark Reynolds, the chair of the construction company Mace, said that amid the rising energy costs and an already depressed construction sector, the tariffs were “ill-timed and unhelpful and will only exacerbate the challenges” facing the UK industry.

Heidi Alexander, the transport secretary, is due to update the Commons on Monday on Labour’s drive to “reset” the cost of HS2 amid concern over its rising price tag. She is expected to say she has asked HS2’s chief executive, Mark Wild, to explore reducing the speed of its trains to save money.

A government source said Alexander was “weighing up all options to claw back as much time and money for the taxpayer as possible” with the aim to open the railway as soon as possible and at the lowest possible cost.

Mace is building stations at London Euston and Birmingham Curzon Street for HS2, the stalling rail project that is already expected to cost about £100bn when accounting for inflation. Last year its boss told ministers that a deadline of opening the line in 2033 could not be met.

Contractors are understood to have already bought much of the steel that goes into the tunnels, viaducts, bridges and underground work that will support the railway. Now they are being told to look for opportunities to buy in advance for other elements such as stations, to mitigate against future price increases.

From July, quotas on importing many overseas steel products will be slashed by 60%, and duties outside those quotas will be raised to 50%. The measures bring the UK in line with recent moves by the US, the EU and Canada in response to a surfeit of cheap imports from China, which is by far the world’s largest producer.

“We have to be honest that tariffs on imported steel will hit infrastructure projects with a cost shock,” said Milda Manomaityte, the chief executive of the Association for Consultancy and Engineering. That would be “felt sharply” on bridges, railways and new tram lines, she added.

Even before the Iran war sent energy prices soaring, the construction industry was trying to bounce back from its worst run since the financial crisis almost two decades ago.

The tariffs were “really unhelpful to the construction market and to the economy at the moment”, said Paul Gandy, the former boss of Tilbury Douglas, a construction company specialising in public projects.

“A lot of this steel is going to go into public sector work,” added Gandy, now the president of the Chartered Institute of Building. Many of those schemes were already “not a pretty picture” when it comes to spending.

The levies are expected to save primary steelmakers such as Tata and British Steel from collapse. The sector, viewed by ministers as strategically important, employs about 10,000 people and has suffered decades of job losses.

A source close to one of the primary steelmakers defended the tariffs, saying: “The steel industry needs to compete with cheap imports coming in from all over the world … once it’s gone you can’t just start it up again.”

A spokesperson for HS2 Ltd said: “During 2023-24, more than half of the steel used to build Britain’s new high-speed railway was from the UK, rising to two-thirds in 2024-25. Our contractors have already procured most of our structural steel for our major civil structures.”

A government spokesperson said the tariffs would make construction “less reliant on steel made overseas” but that it would review the policy after a year “to ensure it remains fit for purpose”.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Traffic & Transport

Arctic blast to bring snow, hail and icy conditions across UK this weekend | UK weather

Published

on


An Arctic blast of very cold air will this weekend bring snow, sleet, hail, freezing rain and icy conditions across most of the UK, forecasters have said.

The Met Office issued new yellow warnings for wintry conditions and potential travel disruption lasting until Sunday morning. Previous snow and ice warnings for Scotland and northern England expired at noon on Friday. Freezing temperatures have also led to a four-day health alert for cold weather.

In northern Scotland and coastal areas of north-east England and Yorkshire from 4pm until 10am Saturday there are warnings of snow, sleet and hail showers. Across Wales, south-west England, northern England, the Midlands, the east of England down to London the warning is for ice between 5pm and 10am on Saturday.

A yellow warning for ice has been issued for Northern Ireland, which will be in place from 8pm on Friday until 10am on Saturday.

Snow on the North York Moors near Danby, North Yorkshire. Photograph: Ian Forsyth/Getty Images

A further snow and ice yellow warning comes into place between 9pm on Saturday and 10am on Sunday. It covers Scotland and northern England, with forecasters predicting potentially heavy snow and freezing rain.

The wintry conditions would mean hazardous ice on untreated roads and pavements, forecasters said. The Met Office said the wintry weather was the result of an Arctic maritime air mass bringing colder conditions from the north of Scotland southwards.

On Friday morning, National Highways said the A66, a major route across the Pennines, was closed between the A67 near Bowes in County Durham and the A685 near Brough in Cumbria because of “concentrated snowfall”.

It said: “National Highways area team crews are on scene with winter treatment vehicles working to clear and treat the carriageway, however forecasts predict that snowfall will continue in the area throughout the morning. Units from Cumbria police are also on scene assisting to clear the traffic. Road users travelling across the Pennines are advised to plan ahead and consider alternate routes.”

A snowplough clears the road on the A66 in Durham, north-east England.

The UK Health Security Agency issued yellow alerts for cold weather across northern England and the Midlands from 6am on Friday until 8am on Monday. The alerts warn of a greater risk to life for vulnerable people and increased use of healthcare services by vulnerable people.

The wintry weather comes after a strikingly wet start to 2026 for large parts of the UK. People in parts of Devon, Cornwall and Worcestershire had rain for 40 days, the Met Office said this week. On Friday in England there were 76 flood warnings and 154 flood alerts in place. In Wales there were four flood alerts.

For others it was the absence of sun, with Aberdeen going through 21 days of sunless weather until, finally, it came out for about 30 minutes on Thursday afternoon.



Source link

Continue Reading

Traffic & Transport

Heathrow isn’t crowded, it’s travellers walking on the wrong side, boss says | Heathrow airport

Published

on


Heathrow airport has revealed a crowding problem that a third runway cannot solve: British and foreign travellers walk on different sides, and keep colliding, according to its chief executive.

Thomas Woldbye said that while Heathrow serviced more passengers in a smaller overall area than comparable European hubs, part of the London airport’s trouble was the differing continental sense of direction.

Speaking at an industry event, the Danish boss said one reason people thought Terminal 5, the main terminal used by British Airways, was crowded was that people were “in the wrong place”.

In comments to the Aviation Club UK, he said: “The problem is that all the British people keep to the left and normally Europeans keep to the right. And they do that in both directions.

“So we can be crashing into each other, and I see that from personal experience.”

Woldbye said that while “I have jokes with our people”, it was an issue that could be changed. “We just need to make sure that everybody going this way keeps to the left and this way to the right. I know that’s simplified but that is the sort of thinking that we need,” he said.

Thomas Woldbye said: ‘All the British people keep to the left and normally Europeans keep to the right. And they do that in both directions.’ Photograph: Soeren Bidstrup/Ritzau Scanpix/AFP/Getty Images

Heathrow will build more satellite terminals should it succeed with plans for a third runway, which could add about 40 million extra passengers of varying directional preferences to the mix. The 240,000 extra flights a year will be guided by air traffic control.

Woldbye said even with expansion, backed by the government, rival international hubs would grow faster than Heathrow. “London will lose market share every single year for the next 10 years. I think that should be a serious concern,” he said.

Meanwhile, the airport is attempting to address concerns that a third runway is incompatible with the UK’s 2050 net zero goals by accelerating the use of sustainable aviation fuels (SAF).

Virgin Atlantic’s Flight100 was the first commercial airplane to be making a transatlantic flight using 100% sustainable aviation fuel in November 2023. Photograph: Virgin Atlantic/EPA

It has established an £80m pot – paid from landing charges – to subsidise airlines that choose to use more SAF on top of the minimum required under national mandates.

The mix of aviation fuel in the UK must average at least 3.6% SAF over the course of 2026, but Heathrow expects to hit a self-imposed target of 5.6%, helping airlines to cover some of the additional cost of the more expensive cleaner fuel.

Planes running on SAF – so far largely produced from recycled cooking oil – emit equal amounts of CO2 in flight as those using fossil fuels, but the net carbon footprint is calculated as lower because of the “life cycle”, ie how it is produced compared with normal jet fuel. SAF is regarded as a potential solution to significantly decarbonise long-haul aviation, although many remain sceptical.

Matt Gorman, Heathrow’s director of sustainability, said: “We have looked to use our scale and influence to attract SAF and we’ve shown you can get SAF flowing. The next challenge is stimulating domestic production – from a carbon, but also a energy security and growth perspective.”

Duncan McCourt, the chief executive of industry group Sustainable Aviation, said government pledges to start building five UK fuel plants by 2025 had been “optimistic”, with none yet under construction, but added they were making progress. “There is a real economic growth opportunity, for tens of thousands of jobs in the UK by 2050,” McCourt said.

Provisional figures published this week showed that the 2025 supply met the UK’s first annual fuel mandate of 2% SAF, with high uptake in the final months of the year after fears that the industry would miss the target.



Source link

Continue Reading

Traffic & Transport

Deeper and down with Keir Starmer | Keir Starmer

Published

on


Rafael Behr says many voters see Keir Starmer as “the archetypal status quo politician” (Keir Starmer is the bandage that Labour can’t rip off for fear of opening old wounds, 11 February). They could be on to something, since the band of that name is renowned for its dull, predictable output, which has included Accident Prone and, more optimistically, Come On You Reds and The Party Ain’t Over Yet.
Mike Hine
Kingston upon Thames, London

You published a number of letters critical of Keir Starmer, but let us be thankful that he has not inflicted as much damage as Margaret Thatcher or David Cameron.
Richard Bartholomew
Colchester

I understand “spad” at Westminster means special adviser. I spent my career working for British Rail. We also used the acronym “spad” – signal passed at danger. It seems they have both the same outcome – a train crash.
David Carter
Wakefield

The “large wire cage with an infrared lightbulb in the centre” (Letters, 15 February) was a Glow Baby. It was invented by my uncle, John Chew, and was sold in the 1960s and 70s before electric blankets became popular. We sold them in our ironmonger’s shop and my mother used one for years. We still have it tucked away in the loft.
Cal Weatherald
Belper, Derbyshire

I was pleased that Gwyneth Lewis (Country diary, 14 February) took expert advice and found that her overgrown tree was not the infamous leylandii but a western red cedar (Thuja plicata). It is also favoured for beehives – bees appear to love its aroma, and unpainted hives survive outdoors for decades.
John Edmondson
Holywell, Flintshire

Have an opinion on anything you’ve read in the Guardian today? Please email us your letter and it will be considered for publication in our letters section.



Source link

Continue Reading

Trending