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
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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