‘Support steel industry to drive economic recovery’

The UK steel sector, with its blast furnace operation in Port Talbot at its heart, needs to be supported as a key strategic industry that helps drive the recovery, says former Labour leader Ed Miliband.

Mr Miliband, who is now part of Sir Keir Starmer’s frontbench team as shadow business secretary, said the steel industry and wider manufacturing sector needed not just financial backing from the UK Government, but support to win major contracts.

Indian-owned steelmaker Tata is continuing discussions with the UK Treasury over funding running into hundreds of millions of pounds.

The Treasury, although not commenting on individual firms, is working up an initiative, known as project Birch, which could see it offering finance to major employers such as Tata and Jaguar Land Rover in the form of convertible loans, which at the end of their terms could see firms opting for the UK Government to take equity stakes in them rather than repaying the finance.

Tata employs about 8,000 people across the UK, with 4,000 at its primary steelmaking plant in Port Talbot.

In a letter to Business Secretary Alok Sharma, Mr Miliband and shadow business minister Lucy Powell said: “Ministers should boost the steel industry now as a cornerstone sector for a strong and sustained economic recovery.”

A Tata spokesman said: “There’s no update on discussions with the UK Government.

The Welsh Government said it stands ready to provide a support package for Tata, that relates to Wales, but due to the scale of the backing required it would need significant UK Government input.