MINISTERS have urged a Government steel U-turn claiming a failure to back new plans will make a mockery of the Northern Powerhouse.

A quintet of Labour MPs have appealed for Whitehall support to establish a steel-focused Materials Catapult in the region.

The North-East already has Catapult hubs - Government-backed centres of excellence – which focus on innovation in the digital, satellite and high-value manufacturing sectors.

However, the Labour MPs say a proposal to set up a steel operation was rejected by Innovate UK, the country’s innovation agency, because it wasn’t a priority.

The MPs, who include Redcar’s Anna Turley, want the Materials Processing Institute (MPI), based near Middlesbrough, to join the programme and provide a crutch to potentially rescue the North-East’s steel sector from further malaise.

The industry was rocked after Redcar’s SSI UK collapsed into liquidation and Caparo Industries’ made a number of redundancies after shutting its Hartlepool forge.

To seek redress, the MPs, which also include Tom Blenkinsop, chairman of the All Party Parliamentary Group on Steel, Andy McDonald, Alex Cunningham and Iain Wright, have now written to Northern Powerhouse minister, James Wharton.

They said the MPI’s stature as a research and development centre could encourage industry investment and help British businesses become world-beaters.

They said: “The Materials Catapult would be headquartered at the MPI and would benefit from Middlesbrough-based TWI, Britain’s largest independent research and technology organisation.

“However, the proposing partners were told earlier this year that steel and materials innovation were not a priority for the catapult network.

“This approach does not surprise us given the lack of Government action to save steel in Redcar.

“The Materials Catapult proposes a clear UK-wide, enterprise-led response.

“If the so-called Northern Powerhouse is to deliver, this is precisely the sort of commercial approach required to ensure the success of Britain’s vitally important materials industry, enhanced by Government intervention to tackle market failure.”

Mr Wharton, MP for Stockton South, previously told the Commons all may not be lost over a Catapult bid.

He added: “My understanding is that the bid is not sufficiently strong at this time.

“However, it is my intention to ask the Secretary of State for Business, Innovation and Skills to look personally at that and to ask officials whether improvements or changes could be made that would enable that to be delivered.

“If there is potential and opportunity, it is important we ensure that has been explored to the fullest degree.”

The MPI previously launched a commercial steelmaking operation to meet customers’ requirements for smaller and unique orders.

It also has a five-year deal to support British Steel as it develops rail and construction goods.