Business
Ministers approve £500m Tata Steel subsidy but Tories say it ‘falls short’
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
Welsh Water slammed after thousands were left without water
DWR CYMRU has been slammed by a councillor who warned people “could have died” after thousands were left without water.
Tens of thousands of residents across the county were left without water after a mains burst at a treatment plant in Dolgarrog last week.
Welsh Water said supplies were restored to homes and businesses on Monday morning.
The chairwoman of Conwy’s finance committee slammed Dwr Cymru during a meeting at the council’s Bodlondeb HQ on Monday.
Old Colwyn councillor Cheryl Carlisle thanked volunteers and council staff for pulling together before calling for a public inquiry into the crisis.
Security guards
Cllr Carlisle claimed those in poor health had been left without water and said security guards at water stations had turned people away with small children.
“I’d like to take the time to thank everyone that’s being involved in the crisis in Conwy over the last six days, the selfless volunteers, everyone that provided water and help to the elderly and vulnerable, and also the engineers for fixing the problem and our social care staff and the other staff who have helped keep our nursing homes going, our care homes, and (looked after) the most vulnerable,” she said.
“On a different note, there will need to be an inquiry, won’t there, into the crisis response from Dwr Cymru.
“You cannot fault the engineers, but the delays in basic organisation, like setting up the water stations.
“It was 48 hours in my particular community. Without the volunteers, it would have been very, very serious, indeed, for those with health conditions.”
She added: “The priority lists of Dwr Cymru did not work.
“There were people on it that were still undelivered (not had water delivered) as was last night [Sunday], cancer patients, dialysis patients. This is completely unacceptable.
“Security guards turned away members (of the public) with little children. That was absolutely unacceptable as well.
“I think this has brought out the very best in people and, in just a few, the very worst. There needs to be a clear disaster plan going forward.”
Cllr Carlisle then insisted an inquiry was needed after Cllr Goronwy Edwards suggested a review.
She added: “I think it needs to be something more than a review, given the seriousness.
“People could have died, those with (serious health conditions). I don’t think we should downplay anything until everyone has come through this intact.”
Conwy Council leader Cllr Charlie McCoubrey also thanked those councillors and members of the public “who had gone above and beyond to look after their communities”.
He added the authority was now in a recovery phase with some households still without water and some schools affected.
“Clearly, with any major incident, questions need to be asked about could this have been prevented, was the response adequate, and what happens in the future in terms of how we coordinate things and prevent incidents like that happening again?”
Cllr McCoubrey said he was working with Welsh Government to get answers from Dwr Cymru.
Report by Richard Evans, Local Democracy Reporter
Business
Decision due on development of buildings at Trewern Farm
A CALL to let a 950-herd north Pembrokeshire dairy farm keep a farm shed built without permission over a decade ago is expected to be approved later this month.
In an application recommended for conditional approval at Pembrokeshire Coast National Park’s development management committee meeting of January 29, Trewern Farms Ltd is seeking permission for the retention of the agricultural building and lay down area at Trewern Farm, Felindre Farchog.
The application is part of a wider complex planning history associated with the site.
A report for Park planners says: “Trewern Farm is operated as a zero grazing style dairy farm with 304 hectares located on two separate parcels of land, one at Trewern with the remainder being at Penpedwast, adjacent to Castell Henllys. The farm has a dairy herd of approximately 950 cows.
“Trewern Farm has expanded significantly over recent years with many of the buildings and structures on site having been erected without the prior benefit of planning permission, and having since been regularised through a combination of retrospective applications and certificates of lawfulness.
“The building subject of this application is believed to have been constructed in 2014. The site currently comprises an agricultural shed immediately adjoining another shed and is used for cubicle housing.
“A slurry lagoon, silage clamps and 12 of the newer agricultural buildings are now lawful as Certificates of Lawfulness were granted for these whilst the Authority was awaiting an Environmental Impact Assessment to be submitted by the applicants for the 2015 planning application to regularise the unauthorised buildings.
“However, this is the last of the outstanding agricultural buildings which are not lawful, and an enforcement notice was served in May 2018 requiring its removal. This notice was appealed in November 2019 and is currently being held in abeyance by the Planning Inspectorate.”
It says the building referred to in the application “is described as being designed to house cattle in a series of cubicles, and forms part of a longer set of buildings running along the southern section of the farming complex,” adding: “The livestock numbers are not proposed for increase as a result of this application but will be as secured [by a planning consent] restricted to no more than 960 milking cows with 1020 maximum excluding calves.”
Local community council Nevern has previously said it has “grave concerns” about the application, asking, amongst other things, how the 960 cattle limit will be policed and important nearby woodland will be protected.
The application was previously recommended for approval at the park’s December meeting, but was deferred as not all received documentation had been published on the national park’s planning website.
The application is now returning to the January meeting, again recommended for conditional approval.
Business
Castell Howell launches new Food Show at Welsh International Culinary Championships
CASTELL HOWELL has launched a new Food Show, showcasing the food trends and innovations that the hospitality industry can expect to see in 2025 and giving visitors a preview of its growing range of Welsh food and drink products.
The new industry event is taking place alongside the 2025 Welsh International Culinary Championships (WICC) at the International Conference Centre in Newport from 20-22 January.
Castell Howell managing director Matt Lewis said: “The Castell Howell Food Show will be a new highlight in this three-day celebration of Welsh culinary excellence, hospitality skills, and innovation. As the largest wholesale supplier of Welsh Food & Drink, it gives us the opportunity to champion our excellent Welsh producers, to support hospitality customers in developing their businesses and, ultimately, to help our communities and local economies throughout Wales to thrive.
“Visitors will have the unique opportunity to engage directly with Castell Howell specialists representing every aspect of our business from insights into the latest trends, to discovering what’s in the pipeline for Welsh food and drink producers in 2025,” he said.
The Castell Howell Food Show will be a new annual event in the calendar at the start of the year, serving as a preview for its larger established trade shows, hosted at Parc y Scarlets in Llanelli and Parc Eirias in Conwy.
The Welsh International Culinary Championships, organised by the Culinary Association of Wales, bring together the nation’s most talented craft chefs, butchers, and front-of-house professionals for three days of demanding competition. The 2025 WICC also hosts the Skills Competition Wales hospitality finals, showcasing the country’s top apprentices.
Deputy First Minister, with responsibility for Climate Change and Rural Affairs, Huw Irranca-Davies, said:
“These two events promise to be a fantastic showcase for Wales’ food and drink industry. It’s an opportunity to celebrate Wales’ culinary excellence and the strength of our hospitality sector. Castell Howell plays an important role in supporting Welsh farmers, producers and the hospitality sector – and I wish them well with this new event.”
Further information about the event is at foodshow.wales
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