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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

Major redevelopment of Begelly caravan site gets green light

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A CALL to change to use of land at Pembrokeshire caravan park from touring to static units has been given the go-ahead by county planners.

In an application recommended for approval at the March 10 meeting of Pembrokeshire County Council’s planning committee, I & J Leisure Ltd, through agent Gerald Blain Associates Limited sought permission for a change of use of land for the relocation of 27 touring caravan to 27 static caravans, with associated works, partly in retrospect, at Stone Pitt Caravan and Camping Site, Begelly.

A supporting statement said the 2025 application follows the granting of a 2021 scheme for a lower number of touring to statics.

It added: “Following approval works had begun on site to implement some of the approved scheme, this work has now ceased. This new application seeks permission for a revised site layout of the approved scheme, regularisation of some works already carried out, and an increase in the number of pitches converted to static units. The increase in static units is facilitated by the removal of twin unit lodges in favour of single static units.

“The proposed development will remain within the same three enclosures as the approved scheme: eastern, central and western. In the western enclosure, eight static caravan bases have already been installed, alongside the construction of a gabion retaining wall between the western and central areas.

“The land has been reprofiled along the southern boundary to create additional space. All units in this enclosure would not be single static units and the number of pitches proposed has been increased from 11 to 13.

“The central enclosure has also undergone works, including the levelling of land and construction of the gabion wall. The size of this enclosure has been increased slightly through the removal of some trees.

“The revised layout proposes seven single units, up from six in the previous scheme. Surrounding the gabion wall, a wildlife garden and replacement tree planting is proposed to enhance biodiversity.

“In the eastern enclosure, the previous proposal for five twin-unit lodges has been replaced with seven single-unit statics. The row of touring pitches to the north of the eastern parcel will be removed and the vacated area will be converted into a landscaped wildlife garden to improve the visual and ecological character of the site.”

An officer report recommending approval said: “Although the planning statement refers to five additional static pitches this appears to be a reference to the difference between the proposal and the previous permission for upgrading of touring pitches to static pitches. There would be no increase in pitch numbers or site area.”

It added: “The proposal would have an acceptable visual impact and would not be detrimental to local amenity or highway safety. The proposal includes biodiversity enhancements and additional landscaping.

“However, it is considered that a further detailed landscaping strategy is required to be submitted for consideration for the western boundary of the site to ensure the proposal complies with the relevant policies of the LDP.”

At the March meeting, approval delegated to the Head of Planning following conditions including the submission of modifications to the landscaping on the west boundary, and an amended plan showing that overall pitch numbers have not been increased, was moved by Cllr Alec Cormack, and was unanimously backed by members.

 

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The Town Crier Pub, Tenby, redevelopment plans approved

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PLANS to expand the facilities offered by a Pembrokeshire seaside town pub, which was once a toyshop, have been approved by the national park despite concerns raised by the local civic society.

In an application to Pembrokeshire Coast National Park, The Old Town Crier Pub Ltd, through agent Argent Architects, sought permission for the installation of a retractable canopy to rear courtyard of The Town Crier Pub, 3-4 Upper Frog Street, Tenby.

A supporting statement said the scheme for the pub, in Tenby town centre, with a rear boundary on the town’s Grade-I-listed 13th century town wall, “makes a positive contribution to the site, adding an elegant structure, which remains sensitive to the host building and the historic town wall”.

The application added: “The proposals are limited to the private realm of the premises’ courtyard, and do not touch the town wall.  The experience of the town wall from the public realm will remain unchanged.  There is no perceived impact on the historic town wall arising from the proposals.”

The application was supported by Tenby Town Council, but Tenby Civic Society raised concerns about the potential impact on the nearby town walls.

It added: “We regret having to put these views as on balance the modern scheme built on this site has a lot of virtues, one of which has been to open up views and appreciation of the inside of the Town walls to the public as customers.

“The application presents no justification for the impact on the inside of the town walls, and the proposal would in our view diminish the significance and appreciation of the inside of the town walls.”

An officer report recommending approval noted the concerns, pointing out the civic society was not a statutory consultee.

It added: “Whilst in very close proximity to the town walls, the proposed canopy is not readily visible from the public realm, the existing courtyard connecting to the highway only via a pedestrian door, this offering limited views into the site. In terms of overall impact on the special qualities of the National Park, the proposal is considered acceptable.”

The Upper Frog Street site of the Town Crier was formerly the Clarice Toys toy and novelty shop, and is called the Town Crier in tribute to the late John ‘Yobbler’ Thomas, a former proprietor of the shop and a former town crier of Tenby.

John Thomas served as Tenby’s town crier for more than 30 years, and was responsible for bringing four national crier contests to Tenby.

John and wife Caroline, who would become a councillor and serve as mayor in the town, set up Clarice Toys in Tenby’s Upper Frog Street after their marriage in 1961, with the business being later run by their son and daughter, Ian and Kerri.

 

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Business

Former much-loved Siop Clare, Crymych, to become housing

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A CALL to convert a financially unviable disused former antiques shop on the edge of Crymych to residential accommodation has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Clare Griffiths, through agent Josh Macrae, sought a change of use of a disused shop with ancillary accommodation above, at Ty Ebrill, Clares Shop, on the edge of the village, to an ancillary accommodation unit.

A supporting statement said: “Siop Clare is a mixed-use building in the curtilage of the main dwelling on the site, Ty Ebril, it comprises a small flat above a disused shop below. The flat, constructed in 2007, is comprised of a single modestly sized living space and bedroom area, with a bathroom; the flat is accessed by a set of stairs to the rear of the building. Since its construction the flat has been used as ancillary accommodation for family members of the owners of Ty Ebrill.

“The disused retail premises below is comprised of an open plan shop area with a conservatory attached, the conservatory was previously used as a flower preparation area.

“The shop was in use for a number of decades; it was operated by the current owner since 2003 and was previously an antiques shop, but has been disused since it was closed 2019 as it was no longer financially viable and the owner had changed career. Due to the shop being located within the curtilage of the main dwelling it has not considered suitable for the shop to be leased to another party.”

It added: “The change of use will require a minimal amount of work to covert the disused shop and modestly sized flat into a small dwelling. The dwelling would be suitable for single occupancy, a small household, or as continued ancillary accommodation for the main dwelling, this would create the opportunity for multi-generational living on the site should the owner sell Ty Ebrill.

“As there is a high demand for housing in the Pembrokeshire area it is felt that the proposal would be suitable and would allow the building to become a viable dwelling, creating a potentially low-cost home in the area.”

The application was conditionally approved by county planners.

 

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