One of HS2's largest contractors has raised concerns that the UK government's decision to double tariffs on imported steel will significantly worsen cost pressures for the already strained construction industry. 

The government introduced the measure last week, also reducing the volume of steel that can be sourced from overseas, with the stated aim of protecting Britain's struggling domestic steelmakers. 

However, the policy is expected to drive up the cost of steel at a particularly vulnerable time, as the ongoing energy shock stemming from the Middle East conflicts has already pushed steel and concrete prices sharply higher. This comes amid mounting anxiety over the spiraling budget of the £100 billion HS2 railway project, where rising material costs pose a serious threat to financial viability. 

Mark Reynolds, chair of construction firm Mace, condemned the tariffs as poorly timed and counterproductive, warning that they would only deepen the difficulties already facing the UK construction sector.