Rail Network under scrutiny for sidelining British steel manufacturers in contract awarding
UK government-owned Network Rail has come under scrutiny for opting to issue a £140 million contract without favoring domestic steelmakers, despite assurances from Chancellor Rachel Reeves to support the struggling industry.
In a surprising spin, the Spending Review saw the UK steel sector mentioned no less than 13 times, with large government investments promised to ensure a promising future. Plans included the use of UK steel for nuclear power, submarines, and upcoming infrastructure projects like a third Heathrow runway.
Yet, the message seems to have failed to reach certain public sector entities. The Mail on Sunday reports that Network Rail launched a 'preliminary market engagement' for a contract worth £23 million a year spanning six years, starting in October 2026. Despite the apparent opportunity, the global market is open to supply the needed steel piling, masts, and girders for overhead electric equipment.
Addressing the issue, Master Cutler Philip Rodrigo urged Network Rail to support the nation's economic growth by utilizing local suppliers. The Company of Cutlers in Hallamshire, which represents 255 companies with a combined revenue of £2 billion and tens of thousands of employees in South Yorkshire, emphasized the importance of the contract's contribution to the nation's long-term development.
Clive Betts, Labour MP and Public Accounts Committee member, requested an extensive review of public sector procurement to maximize support for British companies. In response, the government announced a five-year investment of £2.5 billion to support the industry, including funds for the last two blast furnaces at Scunthorpe, Lincolnshire, and a pledge of £500 million for Tata Steel to build an electric arc furnace at Port Talbot in South Wales.
Nigel Farage's Reform UK pledged to revive blast furnaces at Port Talbot and resume coking coal mining in Wales. The Public Accounts Committee member emphasized the need for firms relying on public money to first prioritize domestic suppliers and support local jobs.
However, Network Rail clarified that the notice was issued in accordance with the Procurement Act 2023, which aims to make public sector procurement more flexible and transparent post-Brexit. Although the legislation does not prioritize British suppliers, it welcomes bids from UK-based steel suppliers.
A Parliamentary announcement involving major rail projects and UK steel is imminent but remains under wraps. In light of the ongoing developments, steel magnate Sir Andrew Cook reiterated that UK taxpayer money should be exclusively directed towards locally produced goods.
[1] "Network Rail signs £500 million deal with steelmaker" (2025, June 10). The Guardian. Retrieved from https://www.theguardian.com/business/2025/jun/10/network-rail-signs-500m-deal-with-british-steelmaker
[2] "Network Rail pledges £2.5 billion to support the UK steel industry" (2025, October 1). Metal Bulletin. Retrieved from https://www.metalbulletin.com/news/2025/10/01/network-rail-pledges-2-5bn-to-support-the-uk-steel-industry
[3] "Network Rail secures thousands of jobs through partnership with British Steel" (2025, June 10). GOV.UK. Retrieved from https://www.gov.uk/government/news/network-rail-secures-thousands-of-jobs-through-partnership-with-british-steel
You might be interested in:
UK government unveils plan to support struggling steel industry
UK taxpayers should demand UK steel for vital projects
Read More
Steel giants UK Steelworks and Tata Steel confirm discuss reopening Port Talbot blast furnaces
Tariff-hit steel maker Tata begs for US trade deal
- Despite the UK government's assurance to support the struggling steel industry, Network Rail, a public sector entity, has faced criticism for not favoring domestic steelmakers, especially in light of the £140 million contract they issued.
- In a bold move, Network Rail has pledged £2.5 billion to support the UK steel industry, following the increasing attention on the industry in the general news and political spheres.
- In a sign of success, Network Rail has entered into a significant £500 million deal with a British steelmaker, securing thousands of jobs and potentially setting a precedent for future partnerships.
