Government talks to save steel factory

THE investment firm seeking to save 4,000 jobs at a Scunthorpe steel plant has held crunch talks with Government advisers to secure a raft of support measures.

Greybull Capital met with officials to request a series of financial concessions, which sources say are key to it agreeing a successful rescue deal with Tata Steel.

The Indian-owned steel manufacturer privately set March 31 as the final date to decide the future of its unprofitable Scunthorpe facility, which could see it either closed or sold.

But last month Greybull stepped in with a plan to buy the business. The talks are said to be progressing well and in recent weeks the investment firm had what was described as ‘positive engagement’ with the Government.

It is seeking support in terms of the amount of green levies it has to pay, research and development tax credits, and business rates.

The EU recently gave Britain the green lights to offer relief on some taxes intensive energy users pay.

While Government support is key, the success of the deal hangs on an agreement being hatched between Tata Steel and unions.

This includes closing the existing final salary pension plan, a remnant from the firm’s heritage as British Steel. Workers will switch to a less generous defined contribution scheme.

On Thursday, Greybull met local MPs and the leader of North Lincolnshire Council as part of a charm offensive.

Britain’s steel industry has been devastated by cheap imported steel, mainly from China. Lower growth there has left it with excess steel and it has been exporting this to Europe.

The problem has been compounded by UK firms paying some of the highest energy costs and green taxes in the world.

The GMB union is protesting in Brussels next month against the EU’s failure to take action.