£13.5m to support businesses hit by Tata Steel job losses

The company is switching to a greener form of steel production, which needs fewer workers

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

The company is switching to a greener form of steel production at its plant in Port Talbot, south Wales, which needs fewer workers.

Unions have campaigned against Tata’s plans, which will lead to thousands of job losses.

Welsh Secretary Jo Stevens made the funding announcement at her second meeting as chairwoman of the Tata Steel/Port Talbot Transition Board on Wednesday.

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

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

She’s also announced that more than 50 businesses have signed a pledge to support any workers forced to leave their jobs in the steelworks.

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

Ms Stevens said: “Under this government the Transition Board has moved from discussion to delivery.

“Today’s release of an initial £13.5 million 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.”

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.”

Tata Steel UK’s chief executive Rajesh Nair, said: “The Transition Board plays a very important role in supporting the transformation of our business to low-CO2 steelmaking and encouraging regeneration and inward investment to the area, whilst helping to mitigate the impacts those changes may have on our people, our supply chain and our communities.

“The Transition Board has been set up to support both Tata Steel employees and those in local supply chain companies, so today’s announcement and the ambition to help the region and local communities grow in line with the changing needs of the developing industrial ecosystem here in South Wales, is very much welcomed.”

Community union’s National Officer Alun Davies said: “We welcome this announcement, which demonstrates that the UK Labour Government is stepping up to provide support both to workers affected by Tata’s decarbonisation plans, and to the wider community in and around Port Talbot.

“The Welsh Secretary Jo Stevens has acted at pace to ensure that this first tranche of funding can be released as swiftly as possible, and we thank her for her steadfast commitment to our steel communities.

“We are also particularly pleased that this announcement includes support for contractors. In our regular meetings with the UK and Welsh Governments, Community reps and officials have stressed that this vital part of the workforce needs to be included in any package of support, and we are glad that both administrations have listened.

“Whilst we welcome this announcement, it is important to stress that our wider position on Tata’s bad deal for steel has not changed.

“We will continue to oppose the company’s damaging proposals, and we will fight to protect jobs. It remains our firm belief that no compulsory redundancies are necessary, and that an alternative approach is still possible.”

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