The Metal Packaging Manufacturers Association (MPMA) has welcomed the UK government’s decision to reduce the planned cut to tariff-free packaging steel quotas from 93% to 62%, saying the revised approach better reflects the needs of downstream manufacturers while supporting UK steel production.

The association said the decision follows its engagement with the government over the impact the original proposals could have had on the UK’s metal packaging supply chain.

Jason Galley, director and chief executive of the MPMA, described the revised quotas as “a constructive development” for both MPMA members and UK-produced steel.

“It’s essential that MPMA members can continue to access the steel they need to deliver for their customers, to support jobs in local communities and to contribute to the UK’s wider economic and circularity ambitions,” he said.

Galley added that “access to a stable and competitively priced steel supply is essential for UK manufacturers” and said the government’s decision “indicates a more nuanced understanding of the interconnected nature of the UK’s manufacturing supply chains and the pressures facing downstream sectors including metal packaging manufacturers.”

The MPMA said it had consistently argued that, while it supports measures to protect and strengthen UK steelmaking, policy must also recognise that metal packaging manufacturers rely on a combination of domestic and imported steel to operate effectively.

“This latest step from the government reflects the importance of our ongoing dialogue and how considered consultation with sector experts can result in a win-win for both the protection of domestic steel and downstream consumption, which ultimately sets the demand for packaging steel,” Galley said.

According to the association, the originally proposed reductions to tariff-free quotas risked increasing costs, reducing competitiveness and encouraging the offshoring of can manufacturing and filling, while also creating the potential for customers to switch to less-circular packaging materials.

“Ensuring that the tariff-free system reflects the realities of downstream manufacturing has been key to avoiding unintended consequences, including cost inflation, loss of competitiveness, customers switching to less-recyclable packaging materials and the relocation of production and filling outside of the UK,” Galley said.

The MPMA said it will continue to work with the government, stakeholders and industry partners on future policy development.

“A balanced, growth-focused approach is vital to safeguarding downstream manufacturing jobs, maintaining competitiveness and supporting the UK’s food security and wider economic resilience,” Galley said. “It is encouraging to find our government in listening mode and taking action in collaboration to achieve the best outcomes for UK PLC. We trust that we can find opportunities together for growth of the metal packaging sector.”