News

£377m spent saving blast furnaces months after Port Talbot closure

Published

3 months ago

March 16, 2026

Government intervention keeps UK’s last primary steelmaking furnaces running

THE UK GOVERNMENT spent £377 million to prevent the closure of the country’s last remaining blast furnaces at British Steel’s Scunthorpe plant, according to a new report.

The emergency intervention came less than a year after the shutdown of the final coal-fired blast furnace at Port Talbot, which ended more than a century of primary steelmaking at the UK’s largest steelworks.

A report by the National Audit Office (NAO) said the Department for Business and Trade (DBT) stepped in quickly in 2025 to keep the Scunthorpe furnaces operating, warning that their closure would have led to thousands of job losses and major disruption to critical UK supply chains.

The £377 million spent between April 2025 and January 2026 has been classified as a loan, but the NAO warned that total costs could exceed £1.5 billion by 2028 if current spending levels continue.

Operating the furnaces is currently costing around £1.3 million a day, the report said, with no fixed budget, repayment schedule or clear end date for the government support.

British Steel’s owner Jingye had been in talks with the Government between 2022 and 2025 about switching the plant to electric arc furnaces, but no agreement was reached.

In March 2025 the company said it was losing around £700,000 a day due to difficult market conditions, tariffs and environmental costs and warned that it was considering closing the blast furnaces.

The Government feared the closure would leave the UK without the ability to produce virgin steel from raw materials — a capability considered strategically important for defence, infrastructure and rail manufacturing.

Electric arc furnaces, which melt scrap steel using electricity rather than iron ore and coal, are seen as the future of the industry because they produce far fewer carbon emissions. However, they cannot fully replace blast furnaces for certain specialist steel products.

The closure of Port Talbot’s blast furnaces last year marked the end of traditional steelmaking in Wales and triggered widespread concern about the long-term future of the UK steel industry.

At its peak, the Port Talbot plant employed thousands of workers and was capable of producing around five million tonnes of steel a year.

Trade unions and industry groups warned that without intervention at Scunthorpe, Britain risked becoming the only G7 nation unable to produce primary steel.

The NAO said the Government’s decision to intervene reflected the “strategic importance” of maintaining domestic steelmaking capacity, but warned that long-term plans for the sector remain uncertain.

Industry figures and unions reacted quickly to the report, warning that the future of UK steel remains uncertain.

Gareth Davies, head of the National Audit Office, said the Government had acted quickly to prevent serious economic damage.

He said the intervention avoided heavy job losses and disruption to major UK infrastructure and construction projects but warned that the high cost of keeping the furnaces running created “significant uncertainty” about how long support could continue.

Trade unions also backed the decision to intervene.

Alasdair McDiarmid of the steelworkers’ union Community said allowing the plant to close would have had devastating consequences.

He said the Government had taken the right decision to act, warning that local economies would have been “decimated” and that Britain would have lost its ability to produce steel from raw materials.

The intervention has also reignited political debate in Wales, where critics have questioned why similar emergency action was not taken sooner to save the blast furnaces at Port Talbot.

The shutdown of the Welsh plant resulted in around 2,800 direct job losses, with thousands more roles across the wider supply chain affected.

Opposition politicians and industry figures have argued that the contrast between the Government’s approach to Scunthorpe and the earlier closure in South Wales highlights the lack of a clear long-term strategy for the UK steel industry.

Ministers say a wider steel strategy is now being developed to balance the transition to greener electric arc furnace technology with the need to maintain domestic steelmaking capacity.

Climate

Offshore wind ‘could bring new generation of jobs to Milford Haven’

Published

2 hours ago

June 17, 2026

Tom Sinclair

Pembrokeshire ports and Celtic Sea projects placed at centre of Wales’ green energy ambitions

MILFORD HAVEN and Pembroke Dock could be at the heart of a new offshore wind boom after Wales’ new energy minister said the sector could drive jobs, investment and coastal regeneration.

Adam Price, the Cabinet Minister for Enterprise, Connectivity and Energy, told the Global Offshore Wind 2026 conference that Wales was “open for business” and ready to work with industry, the UK Government and The Crown Estate.

For Pembrokeshire, the announcement is particularly significant. The Milford Haven Waterway is already being positioned as a key base for floating offshore wind in the Celtic Sea, with Pembroke Port earmarked as a major renewables hub. Plans for a dedicated floating offshore wind storage compound at Pembroke Dock have already secured planning permission.

Mr Price said: “I believe that the offshore wind sector has the potential to deliver high quality sustainable career opportunities for people in Wales.

“The offshore wind sector has a key role to play in bringing about the regeneration of coastal communities in both north and south Wales.

“Our role is to remove the blockers faced by the sector — whether in planning, access to finance or infrastructure.”

The Celtic Sea floating wind programme is expected to create major supply chain opportunities for Welsh ports, engineering firms, vessel operators and training providers. Marine Energy Wales has said the first 4.5GW of floating offshore wind in the Celtic Sea could create more than 5,300 jobs during construction.

The Port of Milford Haven has previously said the Haven’s existing energy expertise, heavy engineering base and deep-water port facilities make it well placed to support the industry.

Mr Price also welcomed UK Government support for Port Talbot, but Pembrokeshire businesses will be watching closely to ensure Milford Haven and Pembroke Dock receive a fair share of the investment.

Jessica Hooper, Director of RenewableUK Cymru, said offshore wind was “Wales’ next big industrial opportunity”, adding that it could be worth almost £5bn to Welsh businesses and deliver more than 3,000 long-term secure jobs.

For Milford Haven, long associated with oil, gas and marine industry, floating offshore wind could mark the next chapter in the Haven’s energy story.

News

Welsh Conservatives call for overseas spending to be redirected to public services

Published

2 hours ago

June 17, 2026

Tom Sinclair

Darren Millar says taxpayers’ money should be spent on Welsh priorities, not foreign projects

THE WELSH GOVERNMENT has been urged to stop spending taxpayers’ money on overseas projects and instead focus every pound on public services and the Welsh economy.

Darren Millar MS, Leader of the Welsh Conservatives, said ministers should scrap what he described as costly international schemes and overseas offices, arguing that the money would be better spent on hospitals, roads and businesses in Wales.

The Conservatives have repeatedly criticised Welsh Government spending on international projects, including tree planting in Nigeria, solar-powered canoes in the Amazon, and the maintenance of overseas offices.

Mr Millar said the Welsh Government had no responsibility for foreign policy and should concentrate on devolved priorities.

He said: “At a time when patients are being treated in hospital corridors, our road infrastructure is creaking and businesses are taxed to the hilt, it is simply wrong that Welsh taxpayers’ money is being wasted on overseas vanity projects.

“The first duty of the Welsh Government is to the people it serves. Plaid’s Finance Minister is being evasive over how to fund flagship policies, but could save millions of pounds by scrapping wasteful spending on non-devolved areas.

“Tree-planting schemes in Africa, solar-powered canoe projects in the Amazon and the maintenance of Welsh Government offices in exotic locations around the world, including three in China, represent spending on non-devolved areas, which are the responsibility of the UK Government.

“There’s no such thing as government money, only taxpayers’ money, and we should be able to see how every penny is spent.

“The Welsh Government must prioritise the needs of the people of Wales and focus spending on public services and building a stronger economy.”

Community

Armed Forces Day exhibition opens at VC Gallery’s new Riverside home

Published

3 hours ago

June 17, 2026

Tom Sinclair

A UNIQUE exhibition bringing together military history, art and veterans’ stories will open to the public in Haverfordwest as part of Armed Forces Day celebrations later this month.

The VC Gallery will host a special open day at its new Riverside Gallery on Saturday, June 27, inviting the community to explore an exhibition featuring works from the Imperial War Museum alongside historic wartime artefacts, trench art and pieces connected to celebrated Welsh artist Augustus John.

The event will also showcase contemporary artwork created by Armed Forces veterans who served in conflicts including Korea, Northern Ireland, Bosnia, Kosovo, Iraq and Afghanistan.

Organisers say the exhibition highlights not only military history and remembrance, but also the role creativity can play in supporting mental health, wellbeing and recovery.

Throughout the day, visitors will be able to meet members of the VC Gallery team and learn more about an ambitious new project aimed at supporting veterans, families and the wider community.

The exhibition combines nationally significant historical works with personal stories of service and resilience, offering a rare opportunity to view military history through the eyes of those who experienced it.

Families are particularly welcome, with guided family art tours available by advance booking.

The event begins at 10:00am and takes place at the VC Riverside Gallery in Haverfordwest.

Anyone wishing to reserve a place on a guided family tour should email [email protected].

The VC Gallery said it is looking forward to welcoming visitors as it commemorates Armed Forces Day while celebrating the power of art, heritage and community to bring people together.