Home Money Tata Steel’s Port Talbot awaits £500m rescue deal

Tata Steel’s Port Talbot awaits £500m rescue deal

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Deal: A £500m state bailout deal for Tata Steel's Port Talbot plant will be confirmed this week
  • 2,800 jobs could be eliminated by switching to lower carbon-intensive electric arc furnaces

A £500m state bailout deal for Tata Steel’s Port Talbot plant will be confirmed this week.

Business Secretary Jonathan Reynolds will give the government’s backing to a deal which the Mail on Sunday understands will be similar to that struck under the Conservative government.

That deal involved switching to electric arc furnaces and shutting down blast furnace production, costing thousands of jobs.

Deal: A £500m state bailout deal for Tata Steel’s Port Talbot plant will be confirmed this week

During the election campaign, Keir Starmer attacked the agreement, casting doubt on it.

Ministers are likely to point to other aspects they say represent an improvement on the Conservative deal.

Reynolds told the BBC last month that “job guarantees” would be part of talks with Indian-owned Tata and that there was a “better deal available”.

An announcement is expected by the middle of this week, the Mail on Sunday understands. The Department of Trade and Business declined to comment.

Some 2,800 jobs could be eliminated if lower-carbon electric arc furnaces are adopted.

The first furnace, known as Blast Furnace 5, closed in July after 65 years of operation.

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