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Welsh Secretary says decision on subsidies to safeguard Port Talbot steel plant a matter for next PM

26 Jul 2022 3 minute read
Picture by Matt Jones (CC BY 2.0)
The company has been in talks with the Government about its decarbonisation plans, but the Tory leadership contest looks set to delay the process until either Liz Truss or Rishi Sunak is in No 10.

Unions said they are particularly worried about the future of the giant Port Talbot plant in South Wales as well as Tata’s other Welsh sites.

Decisions will have to be be made by the incoming administration, due to be in place in early September.

Tata is reportedly seeking around £1.5 billion in UK state aid to help fund the closure of two blast furnaces at Port Talbot and their replacement with two electric arc furnaces that are less carbon-intensive.


Sir Robert insisted the Government was committed to maintaining a domestic steel industry but major decisions on the use of public money would have to wait until Boris Johnson’s replacement is in office.

He would not confirm Tata’s £1.5 billion demand – “we need to be careful about the figures” – but some element of state aid was being discussed.

The discussions “have obviously been based for some time on an element of Government subsidy to help the transition” from the old furnaces to “something much less carbon heavy”, Sir Robert told reporters.

“It’s something the British Government strongly supports, we believe fundamentally in the sovereign capability of the UK to produce steel and Port Talbot is the epicentre of that.

“I think it’s only right that those decisions are made by the new prime minister.

“That doesn’t mean that the lines aren’t open between now and then, far from it.”

Sir Robert said the fact that he and Business Secretary Kwasi Kwarteng were “reiterating our belief in a sovereign capacity in the UK to produce steel” should “be a very clear indication to Tata and to others that we are deeply committed to a sustainable future for our steel industry”.

Tata Group’s chairman Natarajan Chandrasekaran used a Financial Times interview earlier this month to warn that a transition to a greener steel plant “is only possible with financial help from the Government”.

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One of the two witnesses
One of the two witnesses
1 year ago

So time critical political decisions must be put on hold whilst the Tories faff about with their latest schism?

Last edited 1 year ago by One of the two witnesses
Mab Meirion
Mab Meirion
1 year ago

Buck passing, can kicking and faithless politicians esp. Kwarteng…

1 year ago

Why is it a matter for the next PM.. what is the welsh assembly for ??? Drakeford happy to put on hold M4 relief road and other major projects in Wales, why isnt he bailing out the Steel Works in Wales. He is the first for 20mph and 50mph roads that surround the works and put face in news for that. Or is WAG a complete and utter joke, waste of taxpayers money ( still working from home ) as they realise Wales is not a self sustaining country in its own right we cannot survive as we have nothing… Read more »

1 year ago

Where did he find grass long enough into which he could kick this important issue ?

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