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Ministers approve £500m Tata Steel subsidy but Tories say it ‘falls short’

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MINISTERS have confirmed an agreement providing Tata Steel with a £500 million grant towards its transition to electric arc furnace technology. The announcement comes as Tata Steel prepares to phase out its blast furnace operations at Port Talbot, one of the UK’s largest steelworks.

The switch to electric arc furnaces, which melt scrap steel, is part of a broader effort to reduce carbon emissions and modernise the UK’s steelmaking industry. The £500 million grant was initially approved by the previous Conservative government, and Labour has pledged to honour the commitment. The formal announcement is expected in the House of Commons later this week.

The transition will bring significant changes to the workforce at Port Talbot. Approximately 2,500 workers are facing redundancy, with an additional 300 jobs expected to be cut in the future. Despite this, Tata Steel and unions have agreed on a memorandum of understanding (MoU) that could see further investments in the facility, including the development of a steel plate production plant for offshore wind turbines.

First Minister Eluned Morgan said: “I welcome today’s funding announcement. The Welsh Government stands shoulder-to-shoulder with the UK Government in doing all we can to support workers at Tata Steel and provide a new future for steel production in Wales.  

“In what continues to be an incredibly unsettling situation for many, we will continue to work with all parties to ensure that workers, suppliers and the wider community are supported as the industry transitions to making the green steel that will be vital to the future of the UK economy.”

But Welsh Conservative Shadow Economy and Energy Minister, Samuel Kurtz MS, from Pembrokeshire, said: “The Labour UK Government has been disingenuous with their promises to the people of Wales and fallen short with their new offer, putting steelworker jobs at risk.

“Unfortunately, there is no new money yet allocated by the Labour Government that promised much more during the election campaign.

“The new terms also risk future job losses by threatening the withdrawal of this vital support package agreed by the Conservative Government. This is wrong. The priority should always be protecting the livelihoods and the futures of our steel communities.”

Union sources have confirmed that the MoU includes assurances for the company’s other Welsh sites, such as Llanwern, Trostre, and Shotton, as well as commitments to explore new steel plate technology. This potential new facility in Port Talbot could play a vital role in the UK’s burgeoning offshore wind industry.

Gareth Stace, director general of UK Steel, emphasised the need for competitive electricity prices to support the transition to electric arc furnace technology. “As the steel sector in the UK moves to fully electric arc furnaces, and therefore using an enormous amount of electricity, having competitively priced electricity is critical to the success of our future,” said Mr Stace.

The UK government has introduced schemes to reduce energy costs for major industries like steel, but Stace argued that more needs to be done to bring prices in line with European competitors in France and Germany. He also called on the government to use some of its £2.5 billion steel support fund to help lower electricity costs for producers like Tata Steel.

UK Steel has also urged the government to increase its use of domestically produced steel for major infrastructure projects, reducing reliance on imports. Mr Stace noted that the UK must make investments in facilities like a wide-gauge heavy plate mill to ensure the industry can meet future demands, particularly from the offshore wind sector.

A spokesperson for the Department for Business and Trade said the government was committed to supporting the UK steel industry through its British Industry Supercharger scheme and the recently established Great British Energy initiative, aimed at accelerating the shift to clean energy.

“We’re working in partnership with trade unions and businesses to secure a green steel transition that’s right for the workforce and safeguards the future of the steel industry in Britain,” the spokesperson said. They also reaffirmed the government’s £2.5 billion investment commitment to rebuilding the UK steel industry and supporting affected communities.

Labour’s commitment to honour the previous government’s grant has been welcomed by unions and industry leaders. However, Welsh Conservatives have criticised Labour for taking too long to confirm the funding. Shadow Welsh Secretary Lord Davies of Gower called on the government to expedite financial aid to affected workers.

As Tata Steel and the government navigate the challenges of decarbonising the steel industry, the Port Talbot steelworks remains a focal point of the UK’s industrial future, with both environmental and economic implications at stake.

A joint statement from the Community and GMB trade unions was released on Wednesday, and reads as follows: “This deal is not something to celebrate, but – with the improvements the unions and the Government have negotiated – it is better than the devastating plan announced by Tata and the Tories back in September 2023. Through the MOU discussions the unions were able to secure concessions including a comprehensive skills and retention programme, and extensive investment commitments. We welcome the Labour Government’s intervention which has served to strengthen and lock down the terms of the MOU.

“Clearly this is not where we wanted to be, and we know that a better plan was available. Back in November last year, Community and GMB published the Multi-Union Plan, an alternative approach that would have safeguarded Port Talbot steelmaking and secured a just transition for the workforce. Regretfully we couldn’t secure the support of all stakeholders for our credible alternative decarbonisation strategy, and ultimately the company rejected the basis of our proposals, representing a tragic missed opportunity.

“Under the circumstances representatives of all the steel unions resolved to negotiate the best possible deal, and then put it to a ballot of the membership. This is what we have done, and voting is underway. Our members will decide whether or not to accept the MOU, and the next steps we take together will be informed by the outcome of the ballots.

“Going forward the Government must review existing policies and do everything in its power to ensure that decarbonisation does not mean deindustrialisation – you can’t build a greener economy without a healthy steel industry.”

Responding to the government’s announcement of its deal with Tata Steel, Paul Morozzo, senior campaigner at Greenpeace UK, said: “This is an improvement on the previous government’s proposals but unfortunately it doesn’t yet do enough to protect jobs and this country’s ability to produce green steel. 

“We urge the government to heed the warnings of the past and invest fully in industries of the future. Tackling the climate crisis presents a huge opportunity to create good sustainable jobs, unlocking new economic opportunities for communities all over the country.

“Proper investment in UK green steel production would help our renewable energy supply chain whilst supporting workers and communities in places like Port Talbot and Scunthorpe, rather than having to rely on polluting imported steel to build wind turbines. 

“Climate justice and worker justice must go hand in hand so that we can all experience the huge benefits of the transition to renewable energy.”

Business

Independent brewers join call for business rates relief as pub closures feared

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INDEPENDENT brewers have joined growing calls for urgent, pub-specific relief on Business Rates amid fears that community pubs across west Wales and beyond could be forced to close.

The Society of Independent Brewers and Associates (SIBA) has warned that changes announced in the Autumn Budget will see pub costs rise sharply over the next three years, with the average pub facing a 76% increase in Business Rates. By comparison, large warehouse-style premises operated by online and technology giants are expected to see increases of around 16%.

The issue will be discussed at a meeting taking place on Monday in Saundersfoot, where local publicans, small brewers and business representatives are due to come together to examine the impact of rising Business Rates and escalating operating costs. The meeting is expected to focus on the future sustainability of community pubs, particularly in coastal and rural areas where they often act as vital social hubs as well as key local employers.

Independent breweries are particularly exposed, SIBA says, as the vast majority of their beer is sold through local community pubs. Many small breweries also operate their own pubs or taprooms, meaning they are hit twice by rising rates. Some independent brewers have reported rateable value increases of up to 300%, creating new costs they say will be extremely difficult to absorb.

New industry research published on Thursday (Dec 12) suggests that introducing a pub-specific Business Rates relief of 30% from April 1, 2026 could protect around 15,000 jobs currently under threat in the pubs sector and help prevent widespread closures.

The call for action follows an open letter sent last week by SIBA’s board, expressing deep concern at the impact of the Budget’s Business Rates decisions on the hospitality sector.

Andy Slee, Chief Executive of SIBA, said: “The last orders bell is ringing very loudly in our community pubs after the shock changes to Business Rates in the Budget.

“Publicans and brewers feel badly let down by a system that still isn’t fairly addressing the imbalance between big global tech companies and small business owners.

“We were promised proper reform of Business Rates in the Labour manifesto last year and a rebalancing of the tax regime, but this has not been delivered. Pubs therefore need urgent help to address the planned increase in costs through a pub-specific relief, followed by full and meaningful reform.”

Those attending Monday’s meeting in Saundersfoot are expected to consider how local voices can feed into the national debate and press for urgent action to protect community pubs across Pembrokeshire.

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Business

Cosheston Garden Centre expansion approved by planners

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PLANS to upgrade a garden centre on the main road to Pembroke Dock have been given the go-ahead.

In an application to Pembrokeshire County Council, submitted through agent Hayston Developments & Planning Ltd, Mr and Mrs Wainwright sought permission for upgrade of a garden centre with a relocated garden centre sales area, additional parking and the creation of ornamental pond and wildlife enhancement area (partly in retrospect) at Cosheston Garden Centre, Slade Cross, Cosheston.

The application was a resubmission of a previously refused scheme, with the retrospective aspects of the works starting in late 2023.

The site has a long planning history, and started life as a market garden and turkey farm in the 1980s, and then a number of applications for new development.

A supporting statement says the previously-refused application included setting aside a significant part of the proposed new building for general retail sales as a linked farm shop and local food store/deli in addition to a coffee bar.

It was refused on the grounds of “the proposal was deemed to be contrary to retail policies and the likely impact of that use on the vitality and viability of nearby centres,” the statement said, adding: “Secondly, in noting that vehicular access was off the A 477 (T) the Welsh Government raised an objection on the grounds that insufficient transport information had been submitted in respect of traffic generation and highway safety.”

It said the new scheme seeks to address those issues; the development largely the same with the proposed new garden centre building now only proposed to accommodate a relocated garden centre display sales area rather than a new retail sales area with other goods, but retaining a small ancillary coffee bar area.

“Additional information, in the form of an independent and comprehensive Transport Statement, has now been submitted to address the objection raised by the Welsh Government in respect of highway safety,” the statement said.

It conceded: “It is acknowledged that both the creation of the ornamental pond and ‘overspill’ parking area do not have the benefit of planning permission and therefore these aspects of the application are ‘in retrospect’ and seeks their retention.”

It finished: “Essentially, this proposal seeks to upgrade existing facilities and offer to the general public. It includes the ‘relocation’ of a previously existing retail display area which had been ‘lost’ to the ornamental pond/amenity area and to provide this use within the proposed new building and moves away from the previously proposed ‘farm shop’ idea which we thought had merit.

“This revised proposal therefore involves an ‘upgrading’ rather than an ‘expansion’ of the existing garden centre use.”

An officer report recommending approval said that, while the scheme would still be in the countryside rather than within a settlement boundary, the range of goods sold would be “typical of the type of goods sold in a garden centre and which could be sold elsewhere within the garden centre itself,” adding: “Unlike the recent planning application refused permission it is not intended to sell delicatessen goods, dried food, fruit and vegetables, pet products and gifts.”

It added that a transport statement provided had been reviewed by the Welsh Government, which did not object on highway grounds subject to conditions on any decision notice relating to visibility splays and parking facilities.

The application was conditionally approved.

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Business

Tenby Poundland site could become retro gaming lounge

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TENBY’S former Poundland and Royal Playhouse cinema could become a retro computer gaming lounge, plans submitted to the national park hope.

Following a takeover by investment firm Gordon Brothers, Poundland shut 57 stores earlier this year, including Tenby.

Prior to being a Poundland, the site was the Royal Playhouse, which had its final curtain in early 2011 after running for nearly a century.

The cinema had been doing poor business after the opening of a multiplex in Carmarthen; in late 2010 the opening night of the-then latest Harry Potter blockbuster only attracted an audience of 12 people.

In an application to Pembrokeshire Coast National Park, Matthew Mileson of Newport-based MB Games Ltd, seeks permission for a ‘CONTINUE? Retro Gaming Lounge’ sign on the front of the former Gatehouse (Playhouse) Cinema, White Lion Street, most recently used as a Poundland store.

The signage plans form part of a wider scheme for a retro gaming facility at the former cinema site, which has a Grade-II-listed front facade, a supporting statement through agent Asbri Planning Ltd says.

“The subject site is located within the settlement of Tenby along White Lion St. The site was formerly the Gatehouse Cinema and currently operates as a Poundland discount store, which closed on October 18.”

It adds: “This application forms part of a wider scheme for the change of use to the former Gatehouse Cinema. Advertisement consent is sought for a non-illuminated aluminium composite folded panel that will be bolted onto the front façade of the proposed building, in replacement of the existing signage (Poundland).”

It stresses: “It is considered that the proposed advertisement will not have a detrimental impact on the quality of the environment, along with being within a proportionate scale of the building. It is considered that the proposed signage will reflect site function.

“Furthermore, due to the sympathetic scale and design of the sign itself, it is considered that the proposal will not result in any adverse visual amenity impacts.

“The proposal is reduced in sized compared to the existing Poundland advertisement. The sign will not be illuminated. Given the above it is considered that such proportionate signate in association with the proposed retro gaming lounge is acceptable and does not adversely affect visual amenity.”

An application for a retro gaming lounge by MB Games Ltd was recently given the go-ahead in Swansea.

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