Business and trade minister Jonathan Reynolds said on Wednesday the government would publish a strategy for Britain’s steel sector next Spring, with the aim of boosting an industry that has been in decline for decades, hit by lower cost imports.

 

“This government is taking strong action through a new deal and strategy which will reverse the industry’s stagnation and set out a long-term vision for a bright and sustainable future,” Reynolds said in a statement.

 

He said the government planned to invest 2.5 billion pounds in the steel industry, on top of the 500 million pounds for Tata. The government said about 2,000 Tata staff had already expressed an interest in taking voluntary redundancy.

 

Before Tata began the process to close its blast furnaces – it will shut its second one some time this month – it said it had been losing 1 million pounds a day, illustrating the scale of the challenge for UK producers.

 

China-owned British Steel, which has two blast furnaces in Scunthorpe, northern England, is also in talks with the government about shifting to cleaner manufacturing.

 

The switch to electric steelmaking is expected to cut Britain’s carbon emissions by 1.5 per cent as Port Talbot’s coal-fired plant is the country’s biggest single carbon emitter.

 

Under the new deal between Tata and the government, Tata will evaluate future investment opportunities in steel in Britain and promise to retain 5,000 jobs across its UK business following the blast furnace closure job losses.

 

The government said it could claw back its investment should Tata renege on the deal.

 

First Published: Sep 11 2024 | 5:46 PM IST