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
Langdon Mill Farm Pembrokeshire expansion signed off
THE FINAL sign-off for plans for a heifer accommodation building and associated works at one of Pembrokeshire’s largest dairy farms, with a milking herd of 2,000 cows, have been given the go-ahead.
In an application backed by councillors at the December meeting of Pembrokeshire County Council’s planning committee, Hugh James of Langdon Mill Farms Ltd sought permission for a 160-metre-long heifer accommodation building, a slurry separation/dewatering building and associated yard areas at 1,215-hectare Langdon Mill Farm, near Jeffreyston, Kilgetty.
A supporting statement through agent Reading Agricultural Consultants said: “The holding currently has a milking herd of approximately 2,000 cows, which are housed indoors for the majority of the year, with dry cows and heifers grazed outdoors when weather and soil conditions permit.

“There has been significant investment in buildings and infrastructure at the farm over the last decade in respect of cattle accommodation, slurry storage, milking facilities, Anaerobic Digestion (AD) plant, feed storage. Recently a calf and weaned calf accommodation buildings were approved by Pembrokeshire County Council with construction almost complete.
“The unit is efficient, achieving yields of more than 10,000 litres/cow/year, with cows being milked three times/day in the 60-point rotary parlour. Langdon Mill Farm currently directly employs 21 full-time, and three part-time staff. Of these, four live on site in the two dwellings opposite the farm, with the remaining staff living in the locality.”
It added: “Although the unit has previously purchased heifers to aid expansion, the farm now breeds most of its own replacements to improve genetics and to minimise the ongoing threat of bovine tuberculosis (bTB).”
It said the proposed building would be used by heifers between the ages of 7-22 months, the siting “directly influenced by the adjacent calf and weaned calf buildings, with livestock being moved from one building to the next as they get older”.
Members unanimously supported the recommendation of approval, giving delegated powers to the interim head of planning to approve the application following the final approval of a habitats regulations assessment.
An officer report published yesterday, February 5, said Natural Resources Wales confirmed it had received the assessment, and, “in consideration of the mitigation measures detailed and on the understanding there is no increase in stock, they agree with the LPA’s conclusion that an adverse effect upon the integrity of the SAC [Special Areas of Conservation] sites can be ruled out”.
Formal delegated approval has now been granted by officers.
Business
Report into Wales SME finance paints mixed picture as barriers remain
A NEW report by the British Business Bank and Economic Intelligence Wales shows that while most Welsh SMEs remain financially stable, many continue to face barriers to accessing finance and are less likely than their counterparts in other devolved nations to seek funding for future growth.
The Wales SME Access to Finance Report 2026 has found that 66% of Welsh SMEs are currently using external finance, and eight in ten (80%) report a positive cash flow position. Despite this, 19% of smaller Welsh businesses reported experiencing barriers to accessing finance, the highest proportion among the devolved nations.
The report also highlights a more cautious outlook among Welsh SMEs when it comes to future investment. Just 17% of Welsh businesses expect to require additional finance over the next year, compared with 42% in Northern Ireland and 47% in Scotland. While 62% of Welsh SMEs that anticipate needing finance say they are confident about securing it, overall demand for funding remains lower than elsewhere in the UK.
Regional variations within Wales are also evident. SMEs based in North Wales and South West Wales were more likely to report barriers to finance (both 21%), while South West Wales businesses were least likely to feel confident about securing additional funding. At the same time, SMEs in South East Wales were most likely to report a finance requirement above £250,000, reflecting differing growth profiles across regions.

The findings underline the importance of a diverse and accessible finance ecosystem to support business investment, innovation and growth across all parts of Wales.
Susan Nightingale, Director UK Network, British Business Bank, said: “Welsh businesses continue to show resilience and confidence, with most reporting positive cash flow and steady growth expectations. Yet, clear regional and structural differences remain in access to finance, particularly for smaller businesses and sole traders. With Wales recording the highest share of smaller businesses experiencing barriers to finance among the devolved nations, it is vital that all businesses, wherever they are in the country, have the knowledge, confidence and support to secure the right finance for them. This will be key to unlocking sustainable growth across every part of Wales.”
Giles Thorley, Chief Executive of the Development Bank of Wales, said: “This year’s Wales SME Access to Finance Report shows a mixed picture. It’s encouraging to see many Welsh SMEs reporting strong cash flow, yet concerning that confidence and demand continue to lag behind other UK nations. If we want our businesses to innovate, invest and grow, closing that gap must remain a priority.
“Improving access to finance isn’t something any one organisation can solve alone, but the Development Bank of Wales will continue to play a vital role in supporting SMEs, working alongside partners across the wider finance ecosystem to help businesses invest, innovate and grow.”
Economic Intelligence Wales is a unique research collaboration between the Development Bank of Wales, Cardiff Business School, Bangor Business School, the Enterprise Research Centre, and the Office for National Statistics (ONS).
Business
International Women’s Day event aims to open doors for future talent in West Wales
BUSINESS leaders, students and policymakers will gather in Pembrokeshire next month to mark International Women’s Day with an event focused on opportunity, leadership and retaining talent in West Wales.

The third annual Partners in Progress: Give to Gain conference will take place on Friday (Mar 6), bringing together established professionals and the next generation of workers to share practical advice and real-world experience.
The event is organised by Institute of Directors Wales, in partnership with Bluestone National Park Resort and the Welsh Government through Trade & Invest Wales.

Hosting the conference in West Wales, rather than a city centre, aims to highlight the growing opportunities available in regional communities and the role local employers play in keeping skilled people closer to home.
Running from 10:00am to 2:00pm, the programme will include panel discussions, site tours and networking sessions. Sixth form, college and university students will be encouraged to question speakers directly about careers, leadership and progression.

Speakers include Belinda Houghton-Jones of RBC Brewin Dolphin, Alex Shufflebottom Jones, former managing director of Shufflebottom Ltd and now an investor and mentor, Dr Owain James of Darogan, and Jane Wallace-Jones, founder of Something Different. The panel will be chaired by Richard Selby, National Chair of IoD Wales.
Organisers say the focus will be firmly practical, with businesses sharing examples of how they are developing staff, widening access to opportunity and building inclusive workplaces.
The discussion comes as Welsh firms continue to report difficulties recruiting and retaining skilled staff. IoD Wales’ latest State of the Nation survey found that skills shortages remain the biggest concern for almost four in ten organisations.
Jo Price, Nations Manager for Wales at IoD Wales, said the aim is to connect experience with ambition.
She said: “Partners in Progress is about bringing people together to tackle real challenges facing businesses and future talent in Wales.
“By connecting leaders and students in West Wales, we can share what works, build confidence and create opportunities where people live and want to work.”

Rebecca Rigby, Director of Operations at Bluestone, added: “We’re proud to host this event for a third year. It’s about creating meaningful connections between future talent and inspirational leaders, and showing what’s possible beyond the big cities.”
Thanks to Welsh Government support, tickets are fully funded, although places are limited. Standard prices are £25 plus VAT for members and £35 plus VAT for non-members.
Places can be booked online via the IoD website.
-
Health4 days agoHealth board targets rise in steroid and gym drug use across west Wales
-
Crime5 days agoSex offender jailed after living off grid in Pembrokeshire and refusing to register
-
News6 days agoPrincess of Wales visits historic Pembrokeshire woollen mill
-
Crime4 days agoTeacher injured and teenager arrested for attempted murder at Milford Haven School
-
Crime6 days agoHakin man’s appeal delayed again as Crown Court seeks guidance on insurance law
-
Crime7 days agoArrest made after Carmarthen park stabbing investigation
-
Crime5 days agoJohnston man remanded in custody over knife and assault charges
-
Crime7 days agoMan guilty of threatening to kill Herald editor







