Thousands of people affected by the transition to greener
steelmaking at Tata Steel Port Talbot are set to benefit from
support set up by the UK Government, Welsh Secretary has told a Senedd committee.
Appearing before the Senedd Economy, Trade and Rural Affairs
Committee as part of its report on the Future of Welsh Steel
(Wednesday 20 November) Welsh Secretary explained that since taking up her post in July, the
Tata Steel Port Talbot Transition Board she chairs had already
released £26.5 million to support businesses and workers in Port
Talbot and across steel communities.
The Welsh Secretary told the committee that the £80m Transition
Board was not fully funded when she came into office. However,
she fought for an initial £13.5m in August to support supply
chain businesses and workers.
The full £80m was confirmed by the Chancellor in October's Autumn
Budget. Following this, the Welsh Secretary announced last week
(16 November) a further £13m to fund grant schemes to help people
start new businesses and grow or protect previous businesses.
Dozens of firms in the supply chain are already moving forward
with applications and money will be granted in the coming few
weeks. The Welsh Secretary added that she expected support in the
coming months and years from the Transition Board eventually to
help thousands of steelworkers, family members and businesses in
the supply chain.
Welsh Secretary told the Senedd:
Our focus is to make sure that we are protecting Port Talbot as a
site of steelmaking in the future and that we will be helping
thousands of people through this transition – not just direct
employees but people in the supply chain and people in the wider
community.
We as a government see a bright future ahead for steel in the UK.
We have a long-term vision that will deliver for the UK and I am
determined that Port Talbot will be at the forefront of our steel
industry in the future.
The Welsh Secretary also reiterated to the committee that within
weeks of taking office in July the UK Government delivered a
better deal that secures the future of Port Talbot Steelworks,
laid the groundwork for future investment and improved terms for
the workforce without additional costs to the taxpayer.
She added that on arrival in office it was found that the £80m
commitment to the Tata Port Talbot Transition Board was unfunded.
It was later fully funded at October's Budget.
Welsh Secretary told the committee:
The fund of £80m was initially announced last October. Between
October 2023 and the General Election in July 2024 not a single
penny of that £80m went out of the door to help steelworkers, the
supply chain or the wider community.
After we took office, I was horrified to discover that the £80m
was an unfunded spending commitment.
I have worked very hard to make sure that the £80m has now been
confirmed through the Budget.
Wednesday's evidence session was the first time that the Welsh
Secretary has appeared before a Senedd committee following her
appointment in July.
Further funds from the Transition Board will be released over the
coming months to provide a wide range of support for steelworkers
and the wider community.
The committee was also told that the UK Government is committed
to providing up to £2.5bn for steel which will be available
through the National Wealth Fund and other routes. This is in
addition to the £500m for Tata at Port Talbot steelworks and will
harness public and private investment to ensure a sustainable
future for UK steelmaking.
The UK Government is also developing a steel strategy that will
set out a long-term vision for the steel sector in the UK.
The Welsh Secretary added:
We will have a steel strategy published in the spring to set out
that vision for how Welsh steel and UK steel will play such an
important part in the future.
The latest announcement of
funding from the Port Talbot Transition Board was made
on 16 November. It included:
-
A business start-up fund which will enable Tata
Steelworkers, their immediate family members and people in
the supply chain to receive support, guidance and to access a
non-repayable grant of up to £10,000.
-
A new business growth fund ranging
between £25,001and £250,000 to support firms
already in operation who are seeking to increase their role
in the local economy.
-
A business resilience fund providing targeted
assistance to local businesses affected by the ongoing
transition at Tata Steel to diversify into new markets,
create new jobs and to find opportunities in emerging sectors
such as low carbon energy with grants ranging
from £2,500 to £25,000.
Welsh Secretary Jo Stevens' appearance at the Senedd's Economy,
Trade and Rural Affairs Committee can be watched on Senedd
TV.
