£13.5 million to support supply chain businesses hit by Tata Steel job losses

Emily Price

The UK Government is announcing funding of £13.5 million to support supply chain businesses and workers affected by job losses at Tata Steel in Port Talbot.

The Indian steel giant announced last year its plans to replace blast furnaces with a new greener electric arc furnace which will require fewer workers.

Tata said the operation had become financially unsustainable after incurring losses of £1m a day.

Despite a last-minute union plea to save thousands of jobs, the company plans to press ahead with the closure of its second blast furnace in September.

Tata has begun the process of asking employees if they would accept voluntary redundancy.

The new funding is the first release from the Tata Steel / Port Talbot Transition Board which was set up in response to the plans to decarbonise the plant.

The board has been providing ministers with advice on how to mitigate the impact on workers, businesses and communities.

The aim of the new funding is to support local businesses that are heavily reliant on Tata Steel as their main customer.

Training

At her second meeting as the transition board’s Chair, Welsh Secretary Jo Stevens said: “Under this government the Transition Board has moved from discussion to delivery. Today’s release of an initial £13.5m in funding demonstrates that we will act decisively to support workers and businesses in Port Talbot, working with Welsh Government, unions and the wider community.

“Negotiations with Tata Steel on the future of the site will continue separately. But this government will not wait for a crisis to overtake us before acting. We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens.

“We are also harnessing the generosity of the local community, with dozens of employers so far pledging practical support for workers. Steelmaking is the lifeblood of communities in Wales, but so too is the support of local businesses. What they are offering will make a real difference to suppliers and staff.”

Money will be available to workers affected by the transition, helping them to find new jobs, access training and gain skills and qualifications in areas where there are vacancies.

More than 50 businesses so far have signed a pledge to support any workers forced to leave their jobs in the steelworks including Fintech Wales, The Royal Mint, Cardiff Metropolitan University, RWE Energy, Ledwood Mechanical Engineering and Pro Steel Engineering.

They have all committed practical support for workers such as guaranteed interviews for anyone made redundant and training and coaching.

The Welsh Secretary is expected to give further details of the business pledge while visiting Rototherm in Port Talbot later today.

The company is a global manufacturer of measurement devices for temperature and pressure.

It is one of the firms in Tata’s supply chain likely to be affected by the transition to electric arc steelmaking.

The Shadow Secretary of State for Wales, Lord Davies of Gower, said the Welsh Secretary needs to lay out how the new financial support will reach the relevant people.

He said: “This deal was only possible because the previous Conservative government intervened in Port Talbot, with one of the biggest support packages in the history of steelmaking to save as many jobs as we could.

“I am also pleased that Jo Stevens and her colleagues have stopped engaging in deeply irresponsible comments, where they implied that a better deal was possible. Tata Steel were crystal-clear that there is no other deal than this.”

Negotiations between the UK Government and Tata Steel regarding the future of the Port Talbot works will continue separately.

Business and Trade Secretary Jonathan Reynolds said: “This funding is an important step towards supporting workers affected by Tata Steel’s transition and businesses in the wider supply chain.

“We’re working in partnership with trade unions and industry to secure a green steel transition that’s right for the economy, our talented workforce and local communities for generations to come, and our negotiations with Tata remain ongoing.”

‘Warm words’

Plaid Cymru says the UK Government’s announcement doesn’t go far enough.

Plaid Cymru’s Economy and Energy spokesperson, Luke Fletcher says Labour should “leave no stone unturned” when looking at options for Tata workers.

He said: “The announcement is welcome and shows that the transition boards is now moving to protect workers if the worst case scenario were to take place.

“Plaid Cymru continues to call on the UK Labour Government to fight tooth and claw for the Steel workers in their negotiations and leave no stone unturned in potential options, including nationalisation, to secure the future of a strategically important asset. We cannot accept the current proposals on the table from TATA.”

More details will be released soon on how local businesses and affected workers can access the initial £13.5m Transition Board funding.