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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

House plan for 25-acre Felindre Farchog farmland site

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PLANS for a rural enterprise dwelling to support a Pembrokeshire horticultural business are being recommended for approval despite concerns from the local community council.

In an application recommended for approval at the April meeting of Pembrokeshire Coast National Park’s development management committee, Southern Roots Organics/Awen Organics, through agent Preseli Planning Ltd, seeks permission for a rural enterprise dwelling, track extension, and associated works at Eithin Farm, Felindre Farchog, near Nevern.

This application is being presented to the Development Management Committee as local community council Nevern has objected to the application raising material planning matters, contrary to the officer recommendation for approval.

An officer report says Eithin Farm comprises about 25 acres of agricultural land, with an additional seven acres to be rented by the applicants; the applicants running a horticultural business from the site, using multiple polytunnels and employing irrigation systems which require careful management.

The report says the business has been trading for over three years and can support a full-time worker, meeting criteria which addresses planning for sustainable rural communities. The proposal is said to meet these requirements, and the officer’s report confirms a genuine need for the dwelling.

Nevern, in its objection, said: “The living accommodation is supposed to be part of the business, it needs to be closer to the sheds, making the whole enterprise more aesthetically pleasing. The area designated for future seasonal agricultural workers would be an areas that would be more appropriate for a traditional cottage. A restriction on the house, a tied house needs to be considered.”

Objections to the plan have also been received from members of the public raising concerns including foul water disposal and the application “has nothing to do with the new current business”.

However, a number of representations have expressed support for the application. Issues raised include the benefit of applicants living on site, helping to reduce travel and carbon emissions, and confirming support for local, small-scale horticulture, and the contribution the business makes to the community.

The report says there is an identified need for a rural worker’s dwelling, especially due to the need to quickly respond to changes in crop conditions and potential failures in irrigation or ventilation systems.

It concludes: “The evidence submitted with this application, having been assessed by PCNPA’s Agricultural Advisors, is sufficient to demonstrate that an essential need exists for a rural enterprise dwelling, and that the proposal meets the tests set out in [policy].

“The siting and design of the dwelling are considered acceptable with no concerns in relation to landscape impact, amenity or biodiversity. Overall, the proposal is considered to be acceptable and a recommendation to grant permission is made.”

 

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Tenby harbour RNLI building takeaway allowed after appeal

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A REFUSED scheme for a takeaway food kiosk at a former lifeboat store in Tenby’s seaside harbour, has now been allowed following a successful appeal.

At the March 2025 development management committee, Ruby Goodrick sought permission from Pembrokeshire Coast National Park planners to turn the old RNLI lifeboat store, Penniless Cove, Tenby Harbour, into a takeaway cold food outlet, open 10am-10pm seven days a week.

The application came before committee members rather than an officer decision as Tenby Town Council objected, and was recommended for approval despite being a departure from the adopted development plan.

However, members voted by 12 in favour to three against approval.

Since then, the applicant lodged an appeal with Planning and Environment Decisions Wales (PEDW), Ruby Goodrick in her statement saying: “The application was refused on the basis that the proposed use is located outside the defined town centre boundary and therefore is contrary [to policies]. However, as outlined in the planning officer’s own assessment, the building is situated approximately 25 metres outside of the defined retail centre and is a use that would otherwise be considered acceptable within that centre.”

It added: “Furthermore, there are already existing local businesses at Tenby Harbour that are allowed to operate without issue. These businesses demonstrate that commercial use in the area, including food-related enterprises, does not adversely affect the surrounding environment or the special qualities of the National Park.”

The Inspector’s report which allowed the appeal, granting permission, focussed on “whether the development would be an appropriate use within this location, the impact on the character and appearance of the area, and whether it would affect Tenby Conservation Area”.

It said that, although the site was just outside the town centre “I consider that a small scale cold food takeaway outlet in this location would not undermine the town centre of Tenby or its retail function and would not have any impact on its future viability and vitality,” adding: “To the contrary, the development would complement the role of the town centre by contributing to having a mix of uses within this edge of centre location, which is encouraged within Future Wales.”

On objections raised about a potential conflict between customers and other harbour users it said: “Whilst there would be instances of queuing outside the premises at busier times I am not persuaded that this would cause conflict with other users of the harbour or cause any hazard with harbour vehicles; the Highways Authority raised no objections to the scheme.”

On potential impacts on the Conservation Area and Tenby Castle, the Inspector noted concerns raised but said it “would not result in any visual impact on the historic harbour area or be unsympathetically sited within this historic landscape”.

The report also said, in terms of waste generation “the addition of another small premises would not have a detrimental impact on refuse levels in the area”.

After considering all the issues, the Inspector’s final conclusion stated: “Having regard to the above and considered all other matters raised by interested parties, I conclude that the appeal should be allowed.

“Planning permission for the takeaway cold food outlet at the former RNLI lifeboat store has therefore been granted.”

 

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Pembrokeshire holiday lets by pub to homes plans lodged

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A CALL to convert holiday lets in a Pembrokeshire village to a single home for their owner to downsize has been submitted to county planners.

In an application to Pembrokeshire County Council, Dr Susan Richards, through agent Carl Bentley Architectural Services, seeks permission for a change of use and alteration works from two holiday let units to form one dwelling at Dovecote Cottage, Cosheston, near Pembroke Dock.

A supporting statement accompanying the application says: “This planning application seeks a change of use of the holiday let units known as Dovecote Cottage to form a new dwelling for the applicant to use as her main/only residence.

“The original farm/agricultural buildings at East Farm were converted from old farm outbuildings to self-catering holiday let units in the 1980s and 2010s partly by the previous owner and also partly by the current owner/applicant.”

It says Dr Richards, living at the village’s Little Mayeston Cottage, has been in the village since 2016, and has owned Dovecote Cottage, near the village’s Brewery Inn, since 2017, adding: “The applicant wishes to downsize from the current dwelling and relocate to a central village location to a smaller dwelling and be closer to friends within the village.”

Of the proposals it further says: “The holiday let units are semi-detached single storey traditional farm outbuildings of stone wall construction set under a pitched roof.

“One unit (known as Dovecote Cottage) provides two bedrooms of accommodation for four people, and the other unit (known as The Stable at Dovecote Cottage) provides one bedroom of accommodation for four people. Both units have open plan kitchens / dining and living areas plus separate shower rooms.”

The application will be considered by county planners at a later date.

 

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