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Ministers consider part-nationalising threatened Port Talbot Tata steelworks

Sajid Javid said 'co-investment' was an option for saving the plant

Jon Stone
Monday 11 April 2016 18:36 BST
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The Port Talbot Tata steel works faces closure if a buyer of the company cannot be found
The Port Talbot Tata steel works faces closure if a buyer of the company cannot be found (Alamy)

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The Government could buy a stake in the Port Talbot steelworks to save it from closure, the Business Secretary has said.

Sajid Javid said the Government was considering “co-investing” with a buyer to save jobs at the plant, which is currently owned by Tata Steel.

The admission raises the possibility of a Conservative government effectively part-nationalising a manufacturing industry – a sight not seen on this scale since the Rolls Royce bailout of 1971.

Sajid Javid, the Business Secretary
Sajid Javid, the Business Secretary (Reuters)

“I’ve been in contact with potential buyers, making clear that the government stands ready to help,” Mr Javid said.

“This includes looking at the possibility of co-investing with a buyer on commercial terms.”

The business secretary’s statement, delivered to MPs in the House of Commons on Monday afternoon, appears to be a reversal of previous government policy.

David Cameron had ruled out nationalisation of Port Talbot late last month after other ministers suggested the idea was still on the table, albeit in temporary form.

The Prime Minister had said public ownership was “not the answer” the issue.

Earlier on Monday Tata said it would sell its Long Products business to Greybull Capital for £1, a move likely to save around 4,400 jobs across the UK and France.

Other companies, including Liberty Steel, are said to be examining the possibility of buying the rest of Tata’s UK steelmaking business.

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