£13.5m to be provided to supply chain businesses and workers affected by Tata blast furnace closure

£13.5 million in funding is being released to support supply chain businesses and workers affected by Tata Steel's decarbonisation plans at its Port Talbot site, the UK Government will announce on Thursday.

It's the first release of money from the Tata Steel / Port Talbot Transition Board fund.

Welsh Secretary Jo Stevens MP is set to make the announcement today (15 August) at her second meeting as chair of the Board.

Thousands of jobs in the town will be cut later this year when Tata steel is set to close the second of its Port Talbot blast furnaces in September due to accumulating losses of £1m a day.

Plans are in place to build an electric arc furnace at the Port Talbot site, which will be able to produce greener steel.

Tata says it has ambitions to produce net-zero steel by 2045 in the UK "at the latest" and plans to reduce 30% of its CO2 emissions by 2030.

The UK Government says it will support local businesses that are heavily reliant on Tata Steel as their primary customer.

It adds it will allow them to turn towards new markets and customers where necessary.

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

The Welsh Secretary is also set to announce that over 50 businesses have signed a pledge to support any workers forced to leave their jobs in the steelworks.

The businesses, which include Fintech Wales, The Royal Mint, Cardiff Metropolitan University, RWE Energy, Ledwood Mechanical Engineering and Pro Steel Engineering, are said to have committed practical support for workers ranging from guaranteed interviews for anyone made redundant, to providing training and coaching.

The Welsh Secretary 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."

Ms Stevens added: "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.”

Meanwhile the 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 CEO, 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.”

Responding to the news, Community's National Officer for Steel 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."

Charlotte Brumpton-Childs, GMB National Officer, said: “We are keen to hear further about the government’s commitments to fast and targeted support for industry. It is vital for steelworkers, contractors and their communities, and the wider economy alike.”

Unite regional secretary for Wales, Peter Hughes, said: “Unite is continuing to fight the workers’ corner in ongoing talks with Labour and with Tata over its UK operations. It is clear that any deal must come with concrete job guarantees and give Welsh steelmaking a bright future.

"It is also important that other workers and businesses that will be affected by the transition to green steel are properly supported so that communities and local economies can all benefit."

Welsh Conservative Shadow Minister for Economy and Energy, Samuel Kurtz MS said: “Welsh Conservatives welcome the release of funding for Port Talbot steelworkers.

“The Conservatives ensured that this substantial sum was earmarked for steelworkers, but it remains a question; whether the Labour UK Government will explicitly promise to honour the £100 million fund in full.

“The Labour Welsh Government haven’t put a single penny on the table for Tata since 2019, they need to look again at their priorities; in particular, their recent decision to offer another £206 million to Cardiff Airport. That money would be better spent further supporting Welsh steelworkers.”

Welsh Conservative Regional Senedd Member for South Wales West and transition board member, Tom Giffard MS added: “I am working as part of the transition board and am eager to make sure the fund actually delivers a difference in Port Talbot and beyond.”

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