Concerns have been raised about the viability of the UK steel industry after the government announced details of a carbon floor price in the Budget. Tata Steel warned that the introduction of carbon payments could deal a "severe blow" to the future of steelmaking in the UK. MPs and contractors also criticised the move, which will see a price of £16 per tonne of carbon emissions introduced in 2013, reaching £30 a tonne in 2020. The UK will set the prices for companies emitting CO_2 to encourage investment in low-carbon alternatives such as nuclear power. But with coal and gas producers expected to pass on the cost to consumers it will cause huge increases in prices for energy-intensive industries such as steel.
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