Government finalising £500m rescue package for Tata’s Port Talbot plant
The package of support had been drawn up by the previous Conservative government.
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
The Government is working to finalise a rescue deal worth £500 million for Tata Steel’s Port Talbot plant this week, following the closure of its blast furnaces, according to reports.
The package of support had been drawn up by the previous Conservative government.
It was set to aid Tata with its plans to build an electric arc furnace, replacing the existing coal-powered process, under ambitions to switch to a more environmentally-friendly form of production.
The Indian steelmaking giant said it would invest £750 million in building the furnace, alongside funding a support package for the employees expected to be made redundant during the transition.
Some 2,800 jobs losses are expected as a result of closing down two blast furnaces at its major plant in South Wales, the first of which was shut in July.
Business Secretary Jonathan Reynolds is planning to make a statement to parliament on Wednesday about the deal, after Prime Minister’s Questions, according to reporting.
It is thought that it will be broadly similar to the previous government’s commitment.
Mr Reynolds previously said he believes there is a “better deal available” for Port Talbot and the steel industry as a whole, as he confirmed that negotiations with Tata were continuing under the new Labour government.
He also said he would “make sure that job guarantees” were part of the discussions.
The Government did not comment on the reports that the state-backed deal could be announced this week amid ongoing negotiations with Tata.
A spokesperson for the Department for Business and Trade said: “Steel is vital for a vibrant, secure economy.
“Our steel sector needs a government working in partnership with trade unions and business to secure a green steel transition that’s both right for the workforce and delivers economic growth.
“Decarbonisation does not mean deindustrialisation, and we will be working to safeguard jobs as part of these negotiations, securing the future of steelmaking communities for generations to come.”
Tata Steel has been contacted for comment.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.