THE UK GOVERNMENT has announced the immediate release of £13.5 million in funding to support supply chain businesses and workers affected by Tata Steel’s decision to transition to greener steelmaking.
Welsh Secretary Jo Stevens announced the release of the first tranche of funding on Thursday, August 15, at her second meeting as chair of the Tata Steel / Port Talbot Transition Board.
The funding comes from the Tata Steel / Port Talbot Transition Board fund, which will support local businesses that are heavily reliant on Tata Steel as their primary customer, allowing them to turn towards new markets and customers where necessary.
Money will also be available to workers affected by the transition, helping them to find new jobs, access training and gain skills and qualifications in areas where there are vacancies.
The Welsh Secretary announced that more than 50 businesses have signed a pledge to support any workers forced to leave their jobs in the steelworks.
The businesses, which include Fintech Wales, The Royal Mint, Cardiff Metropolitan University, RWE Energy, Ledwood Mechanical Engineering and Pro Steel Engineering, have committed to practical support for workers, ranging from guaranteed interviews for anyone made redundant to training and coaching.
The Welsh Secretary gave further details of the business pledge while visiting Rototherm in Port Talbot on Thursday.
Rototherm is a leading global manufacturer of temperature and pressure measurement devices. It is one of the firms in Tata’s supply chain that is likely to be affected by the transition to electric arc steelmaking.
The UK Government has also reset the relationship with the Welsh Government, as well as with unions and other local partners, to work together to deliver for the workers affected.
Negotiations between the UK Government and Tata Steel regarding the future of the Port Talbot works will continue separately.
Jo Stevens said: “The Transition Board has moved from discussion to delivery. Today’s release of an initial £13.5m in funding demonstrates that we will act decisively to support workers and businesses in Port Talbot, working with Welsh Government, unions and the wider community.
“Negotiations with Tata Steel on the future of the site will continue separately. But we will not wait for a crisis to overtake us before acting. We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens.
“We are also harnessing the generosity of the local community, with dozens of employers so far pledging practical support for workers. What they are offering will make a real difference to suppliers and staff.”
Business and Trade Secretary Jonathan Reynolds said: “This funding is an important step towards supporting workers affected by Tata Steel’s transition and businesses in the wider supply chain.
“We’re working in partnership with trade unions and industry to secure a green steel transition that’s right for the economy, our talented workforce and local communities for generations to come, and our negotiations with Tata remain ongoing.”
Oliver Conger, Managing Director of Rototherm, said: “We are part of a really supportive community in Port Talbot, and we are delighted to offer help to any affected workers at Tata Steel and any suppliers affected.
“I believe that if businesses like ours from across the area can come together, we can offer a lot of practical support that will make a big difference to people and the impacted supply chain.”
More details will be released soon on how local businesses and affected workers can access the initial £13.5m Transition Board funding.
The Secretary of State for Wales also made it clear the Transition Board will now be an equal partnership between political representatives, businesses, and unions.
Welsh Conservative Shadow Minister for Economy and Energy, Samuel Kurtz MS, said: “Welsh Conservatives welcome the release of funding for Port Talbot steelworkers.
“The Conservatives ensured that this substantial sum was earmarked for steelworkers. However, it remains questionable whether Labour’s UK Government will explicitly promise to honour the £100 million fund in full.
“The Labour Welsh Government hasn’t put a single penny on the table for Tata since 2019. They need to look again at their priorities, particularly their recent decision to offer another £206 million to Cardiff Airport.
“That money would be better spent further supporting Welsh steelworkers.”
Welsh Conservative Regional Senedd Member for South Wales West and Transition Board member Tom Giffard MS added: “I am working as part of the Transition Board and eager to make sure the fund actually delivers a difference in Port Talbot and beyond.”
