George Osborne stressed that his 2015 Budget package ‘backs’ heavy industries ranging from UK steel suppliers to the nation’s paper mills.

The Chancellor explained that he is taking steps to ensure these crucial heavy industries are not excessively penalised due to their energy demands.

In steelmaking, the need to heat the metal to very high temperatures in order to shape it into steel tubes and beams is one of the main consumers of energy.

But with efforts to penalise companies according to their carbon footprint, this essential part of the steelmaking process is under pressure.

Mr Osborne said: “We back oil and gas and we back our heavy industry too, like steel and paper mills.

I’ve listened to the Engineering Employers, and I will bring forward to this autumn part of our compensation for energy intensive plants.”

The announcement should be good news not just for UK steel suppliers, but also for their counterparts in other heavy industries with unavoidable energy demands.

It’s all part of a pledge to be “the most prosperous major economy in the coming generation”, with the Chancellor extending this support to creative industries ranging from videogames to orchestras.