Steel support will reach thousands, Welsh Secretary tells Senedd
Welsh Secretary Jo Stevens appears before the Senedd Economy, Trade and Rural Affairs Committee as part of its report on the Future of Welsh Steel.
Tata Steel, Port Talbot
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 Jo Stevens 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 Jo Stevens 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 Jo Stevens 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 Jo Stevens 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:
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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.
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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.
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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.