A new £11.78 million fund will soon be available to businesses in
Port Talbot and the surrounding area to help them grow, create
high-quality jobs, and attract long-term investment.
The Economic Growth and Investment Fund is designed to support
companies that offer skilled, well-paid employment opportunities
that match the talents of the local workforce.
The fund includes £6.78 million from the UK Government and £5
million from Tata Steel UK and will complement the work of the
Welsh Government and Neath Port Talbot Council to strengthen the
local economy.
To ensure the fund delivers the greatest possible impact, a
period of engagement with businesses will begin ahead of the fund
opening for bids in the autumn. This will shape the fund's design
- ensuring it meets the needs of businesses and unlocks the
conditions for long-term economic growth, job creation, and
private sector investment. Once engagement has been completed,
the fund is then subject to business case approval by UK
Government.
This funding announcement is the latest from the Tata Steel /
Port Talbot Transition Board, chaired by Welsh Secretary and including representatives from the UK and Welsh
Governments, local authorities, unions and business.
Since its first release of funding in August 2024, it has now
announced £80 million to fund skills training for workers
and regeneration projects as Tata Steel carries out its
transition to electric arc steelmaking.
Secretary of State for Wales said:
This new fund is a powerful example of what can be achieved when
government and business work together to deliver for communities.
Backed by over £11.7 million, it will help local businesses grow,
create high-quality jobs and attract more new investment to Port
Talbot.
This announcement marks the full allocation of the UK
Government's £80 million contribution to the Transition Board –
all delivered in less than a year. It's a clear demonstration of
this government's determination to act swiftly and decisively in
support of Port Talbot and its steelmaking community, ensuring
that funding reaches the people and businesses who need it most.
We said we would back the steelworkers of Port Talbot, their
families and businesses dependent on Tata Steel and we have
delivered on that promise.
Tata Steel UK's Head of Public Relations Tim Rutter said:
We are delighted to support this new Economic Growth and
Investment Fund from our £20 million commitment to the Transition
Board. Local businesses play a vital role in the growth and
economic prosperity of the region, and we are confident this fund
will draw in further investment, providing jobs and opportunities
for people across the area.
We continue to be committed to supporting those individuals
impacted by our business transformation, and this fund will
complement the existing support services that we have put in
place, in addition to the most generous voluntary redundancy
package in the company's history.
We look forward to working with our partners on the Transition
Board, trades unions, local businesses and the community to
ensure this fund has a positive impact.
Welsh Government Cabinet Secretary for Economy, Energy and
Planning, said:
We welcome the new Economic Growth and Investment Fund announced
today.
Delivery is the Welsh Government's watch word. Working in
partnership with the UK Government, local authorities, trade
unions and businesses, we are supporting economic growth today
and actively shaping its future direction for tomorrow.
We are also ensuring that cross-government investments such as
Freeports and Investment Zones align with Welsh priorities and
deliver real and lasting benefits and local job opportunities in
communities such as Port Talbot.
Neath Port Talbot Council Leader, Cllr Steve Hunt said:
This announcement marks another major milestone in our response
to a period of significant change for the local economy of the
Port Talbot area.
A key aim for us as a council is to create more secure, green,
and well-paid jobs and to develop the skills required for these
roles. As such we are working hard to meet the current challenges
and to move beyond these to future economic growth.
“Working alongside our Transition Board partners we will
soon be engaging the local business community to ensure we make
the most of the opportunity that this funding presents
The UK Government has committed £2.5 billion of investment to
rebuild the UK's steel industry for decades to come as it
decarbonises.
This is in addition to the £500 million allocated to Tata Steel
in Port Talbot for an electric arc furnace, which recently
received planning approval with construction due to begin in the
coming months.
The new fund will build on this momentum—helping local people by
supporting the creation of high-quality jobs, encouraging
business growth, and attracting new investment to secure a strong
economic future for Port Talbot.
