Business
Green light for Tata Steel UK’s £1.25bn Electric Arc Furnace project
TATA STEEL UK’S proposals for a £1.25bn Electric Arc Furnace (EAF) based steel making facility at its Port Talbot site have been approved by Neath Port Talbot Council’s Planning Committee.
The decision taken on Tuesday, February 18th, 2025, paves the way for a new era of green steel making in Port Talbot just months after Tata closed its traditional blast furnaces in the town at the cost of thousands of jobs.
The Planning Committee granted approval for the project subject to a long list of conditions and the signing of legal agreements which include securing long term ecological management and mitigation at the site.
While primary steelmaking at Port Talbot ended last September with the closure of the blast furnaces and the ‘heavy end’ of the plant, the new EAF will produce steel by effectively melting scrap steel using high intensity electric currents.
The Port Talbot EAF will be accompanied by two new ladle furnaces in which liquid steel produced by the EAF will be further processed. The new furnaces are due to start operating in 2027 with a crude steel capacity of 3m metric tonnes per year. Molten metal will be tapped from the EAF at a rate of 320 tonnes every 42 minutes.
Traditional steelmaking at Port Talbot used three main raw materials; iron ore, coal and lime. Iron ore will not be required in EAF steelmaking and lime use will be much reduced. Coal will still be required as a reducing agent but in much smaller quantities.
The Tata proposals, described in a planning officers’ report as being of “national strategic importance”, will see the demolition of a number of existing buildings and structures within the current steelworks boundary alongside construction of the new EAF.
This proposal forms part of a £1.25bn investment in the Port Talbot facility supported by the UK and Welsh Governments.
Tata Steel said in its planning application that since 2007 it had lost £4bn at Port Talbot – the position deteriorating further after 2023 due to a leap in energy costs and “ageing assets at the site which are expensive to maintain and operate”.
Tata added in its submissions: “EAF presents the most appropriate solution for the continued use of the Port Talbot site in comparison to alternative options. It will focus on recycling steel – the UK has a large surplus 8 million tonnes exported every year, which is more than any other country in the world – and with ultra-low emissions if the electricity supplied to EAF comes from renewable sources.”
The committee heard there will be a “significant reduction” in emissions to air from the steelmaking process through the transition to EAF steel production.
The Leader of Neath Port Talbot Council, Cllr Steve Hunt, said: “Our primary focus in the move to less carbon intensive steel production at Port Talbot has been on mitigating the effect of the net loss of jobs on our communities here in Neath Port Talbot and further afield.
“Through the Tata Steel UK Transition Board, of which I am a member, we have access to up to £100m (£80m from the UK government and £20m from Tata Steel UK) which is being invested in skills and regeneration programmes for this area.
“The board and associated funding is being concentrated on immediate support for the people, businesses and communities directly affected by the transition to greener steelmaking and is being used to develop a plan for local regeneration and economic growth for the next decade.
“As the new £1.25bn EAF at Port Talbot given planning permission today forms part of that plan we must now work together to ensure it is a success.”
Welsh Secretary Jo Stevens said: “This decision is a significant step forward, providing more certainty over Tata’s plans for the site and for the future of steelmaking in South Wales.
“As part of our improved deal with Tata Steel, we have provided £500m to support the company’s transition to greener steelmaking.
“This is backed by a further £80m which we are investing directly into the community to support individual steelworkers and their families, businesses in the supply chain and on the regeneration of Port Talbot as we drive future economic growth in the area.
“We promised that we would deliver for our steel communities, and through this investment and the Steel Strategy we are doing just that.”
Business
Community council objections to Tenby Lidl store scheme
PLANS for a new store on the edge of Tenby by retail giant Lidl, which has seen objections from the local community council, are likely to be heard next year.
In an application recently lodged with Pembrokeshire County Council back in October, Lidl GB Ltd, through agent CarneySweeney, seeks permission for a new 1,969sqm store on land at Park House Court, Narberth Road, New Hedges/Tenby, to the north of the Park Court Nursing Home.
The proposals for the latest specification Lidl store, which includes 103 parking spaces, would create 40 jobs, the applicants say.
The application follows draft proposals submitted in 2024 and public consultations on the scheme, with a leaflet drop delivered to 8,605 local properties; an information website, with online feedback form; and a public exhibition, held last December at the De Valence Pavillion in Tenby, with a follow-up community event held at New Hedges Village Hall, close to the site, publicised through an additional postcard issued to 2,060 properties.

Some 1,365 responses have been received, with 89 per cent of respondents expressing support for the proposals, the applicants say.
A supporting statement says: “Lidl is now exceptionally well established in the UK with the Company operating c.980 stores from sites and premises both within and outside town centres. Its market share continues to increase substantially, and the company is expanding its store network considerably. The UK operational model is based firmly on the success of Lidl’s operations abroad with more than 10,800 stores trading across Europe.
It adds: “The granting of planning permission for the erection of a new Lidl food store would increase the retail offer and boost the local economy. The new Lidl food store would create up to 40 employment opportunities for people of all ages and backgrounds, providing opportunities for training and career development. This in turn will create an upward spiral of economic benefits.”
Local community council St Mary Out Liberty Community Council has formally objected to the scheme, saying that, while it supports the scheme for a Lidl store in principle, recognising “the economic benefits a new retail store could bring,” it says the proposed location “is unsuitable, conflicts with planning policy, and cannot be supported in its current form”.
Its objections add: “The A478 is heavily congested in peak tourist months. A supermarket would worsen congestion, increase turning movements, and heighten risks to pedestrians, cyclists, and emergency access.”
It also raises concerns on the potential impact through “noise, lighting, traffic disturbance, and loss of quiet amenity” on a neighbouring residential care home.
An initial assessment by Pembrokeshire County Council, highlighted concerns about the visual impact, with the authority’s landscape officer commenting that the store would introduce “an intense urban function into an otherwise rural context”.
The report added: “It is not considered to be compatible with the character of the site and the area within which it is located; and furthermore, will lead to a harmful visual impact on the setting of the National Park.”
The application will be considered by county planners at a later date.
Business
Senedd approves £116m transitional relief for business rates
BUSINESSES facing sharp hikes in tax bills after the 2026 revaluation will see increases phased in over two years after the Senedd backed a new transitional relief scheme.
Senedd Members unanimously approved regulations to help businesses which face significant rises in non-domestic rates bills after a revaluation taking effect in April 2026.
The Welsh Government estimates the transitional relief will support 25,000 ratepayers at a cost of £77m in 2026/27 and £39m in 2027/28. The partial relief covers 67% of the increase in the first year and 34% in the second.
Mark Drakeford, Wales’ finance secretary, stressed the £116m scheme comes on top of permanent rate reliefs which are currently worth £250m a year. He said ratepayers for two-thirds of properties will pay no bill at all or receive some level of relief.
The former First Minister told the Senedd: “In providing this transitional relief scheme, we are closely replicating the scheme of relief we provided following the 2023 revaluation – supporting all areas of the tax base in a consistent and straightforward manner.”
The Conservatives’ Sam Rowlands expressed his party’s support for the transitional relief scheme which will help ratepayers facing sharp increases after the 2026 revaluation.

He said: “We are grateful that the Welsh Government has at least brought forward a scheme that will soften the immediate impact for thousands of Welsh businesses.
“We also understand that if these regulations are not approved or supported… this relief scheme will not be in existence. Many businesses across Wales would face steep increases with no protection at all and that is certainly not an outcome we would want.”
But the shadow finance secretary warned businesses up and down Wales are worried about the increase in rates that they are liable to pay.
Advocating scrapping rates for all small businesses in Wales, Mr Rowlands said: “We’ve heard first-hand from many of those in the hospitality and leisure sector, some of whom are facing increases of over 100% in the tax rates they are expected to pay.”
Responding as the Senedd signed off on the scheme on December 16, Prof Drakeford said the Welsh Government had to wait for the UK budget to know if funding was available. As a result of the time constraints, the regulations were not subject to formal consultation.
Prof Drakeford agreed with Mr Rowlands that voting against the regulations would not improve support, only eliminate the transitional relief package before the Senedd.

Earlier in Tuesday’s Senedd proceedings, former Tory group leader Paul Davies warned Welsh businesses have already been hit with some of the highest business rates in the UK.
He said: “The latest business rates revaluation has meant that some businesses are now facing rises of several hundred per cent compared with previous assessments…
“Whilst I appreciate that a transitional relief scheme will help some businesses manage these changes, the reality is that for many businesses it’s not enough and some businesses will be forced into a position where they will have to close.”
Business
Pembrokeshire industrial jobs ‘could be at risk’ as parties clash over investment
TRADE unions have warned that hundreds of industrial jobs in Pembrokeshire could be at risk without stronger long-term support for Welsh manufacturing, as political parties set out competing approaches ahead of the Senedd elections.
TUC Cymru says its analysis suggests 939 industrial jobs in Pembrokeshire could be vulnerable if investment in clean industrial upgrades were withdrawn, warning that policies proposed by Reform UK, and to a lesser extent the Conservatives, pose the greatest risk to industrial employment.
The warning comes as the union body launched its “Save Welsh Industry – No More Site Closures!” campaign at events in Deeside and Swansea, calling on all political parties to commit to a five-point plan to protect and future-proof Welsh industry.
According to TUC Cymru, jobs at risk locally include 434 in automotive supply chains, 183 in rubber and plastics and 75 in glass manufacturing. The union body says these sectors rely on continued investment to remain competitive and avoid offshoring.
TUC Cymru said its modelling focused on industries most exposed to closure or relocation if industrial modernisation and decarbonisation are not delivered. It argues that without sustained public and private investment, Welsh manufacturing faces further decline.
A GMB member working at Valero in Pembrokeshire said: “It’s clear Nigel Farage has no clear plan. I can see this industry collapsing under his policies. We need support, not division. His way will lead to job losses across the board and the lights will go out.”
The union body stressed that all parties need to strengthen their industrial policies, but claimed Reform UK’s stated opposition to net zero-related investment would place the largest number of jobs at risk across Wales, estimating that almost 40,000 industrial jobs nationally could be affected. Conservative policies were also criticised, though the TUC said the likelihood of job losses under the Conservatives was lower.
Labour has rejected claims that Welsh industry is being neglected, pointing to recent investment announcements made at the Wales Investment Summit, where more than £16bn worth of projects were highlighted as being in the pipeline across Wales.
Ministers said the summit demonstrated growing investor confidence, with projects linked to clean energy, advanced manufacturing, ports, digital infrastructure and battery storage, and thousands of jobs expected as schemes move from planning into delivery.
Labour has argued that public investment is being used to unlock private sector funding, particularly in industrial regions, and says modernising industry is essential to keeping Welsh manufacturing competitive while protecting long-term employment.
At UK level, the party has also highlighted its National Wealth Fund and GB Energy commitments, which it says will support domestic supply chains, reduce long-term energy costs for industry and help secure both existing and future jobs.
Opposition parties and some business groups have questioned whether all announced projects will translate into permanent employment, arguing that greater clarity is needed on timescales and delivery.
Reform UK has argued that scrapping net zero policies would cut public spending and reduce costs for households and businesses, while the Conservatives have pledged to roll back climate-related targets and reduce regulation on industry.
Unions dispute those claims, warning that higher electricity prices and a lack of investment would make Welsh industry less competitive internationally.
TUC Cymru President Tom Hoyles said Welsh industry needed urgent action from all parties to survive and thrive in the 21st century, warning that policies which sought to turn back the clock could put thousands of Welsh jobs at risk.
With industrial areas including Flintshire, Neath Port Talbot and Carmarthenshire also identified as facing significant pressures, the future of Welsh manufacturing is expected to remain a key political issue in the run-up to the Senedd elections.
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