Network Rail under fire as it snubs British steelmakers in contract
State-owned Network Rail has snubbed UK steelmakers for a major contract, despite promises by the Chancellor to support the struggling industry.
In last week's Spending Review, Rachel Reeves mentioned the UK steel sector no less than 13 times and pledged that huge amounts of Government investment would give it a 'proud future'.
She boasted that UK steel would be used in nuclear power, submarines and a third Heathrow runway.
But the message may not have reached some areas of the public sector.
The Mail on Sunday can reveal that Network Rail put out a £140 million order for steel on the open market without favouring UK suppliers.
The Government-owned company, which looks after Britain's 10,000 miles of railway track and infrastructure, last month launched a 'preliminary market engagement' for the contract.
It is seeking contractors for an order of steel piling, masts and girders for overhead electric equipment over six years from October 2026.
A formal tender for the contract, worth £23 million a year, is due to be issued in August. However, the preliminary notice is open to suppliers anywhere in the world.
Master Cutler Philip Rodrigo called on the Government to use UK steel for the contract.
He leads the Company of Cutlers in Hallamshire – a trade guild representing 255 companies with a combined revenue of £2 billion and tens of thousands of employees in South Yorkshire.
'I urge Network Rail to consider its support for the UK's economic prosperity by using suppliers from within the British Isles,' he said. 'This contract with National Rail should also consider the long-term growth of our nation.'
Clive Betts, Labour MP for Sheffield South East who sits on the Public Accounts Committee, asked for an 'across the board review' of public sector procurement to maximise support for British firms. The Government, which is preparing a steel strategy, has pledged to spend £2.5 billion of public money on supporting the industry over the next five years. This includes funds for Britain's last two blast furnaces at Scunthorpe, Lincolnshire. A further £500 million has already been pledged to help Tata Steel build an electric arc furnace at Port Talbot in South Wales.
Nigel Farage pledged last week that his Reform UK party would re-open blast furnaces at Port Talbot and resume mining for coking coal in Wales.
Betts, whose constituency includes several steelmakers, said it was 'entirely right and proper' that firms spending public money 'should first of all look at how they should source from British suppliers and support British jobs'.
Network Rail said the notice had been issued in line with standard procedures under the Procurement Act 2023. The legislation aimed to make public sector procurement 'more flexible and transparent' post-Brexit, but does not prioritise British suppliers over those from other countries.
The Departments for Transport and Business and Trade were approached for comment.
Sources said a major announcement on top of Reeves' Spending Review is set to be made in the coming weeks involving major rail projects and UK steel – but would provide no further details.
Steel magnate Sir Andrew Cook said: 'UK taxpayer cash should be spent exclusively on UK-produced goods. To risk importing dumped foreign steel is crazy.'
A Government spokesman said: 'Network Rail's procurement process remains at an early stage, and we welcome and encourage bids from British steel suppliers.
'We're determined to support the bright future steelmaking has in the UK, which is why we've committed up to £2.5 billion of investment to rebuild the industry.'
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