Home Business News Tata Steel seeks £500m bailout to save over 12,000 jobs

Tata Steel seeks £500m bailout to save over 12,000 jobs

by LLB Reporter
26th Apr 20 1:05 pm

Labour MP Stephen Kinnock said, Tata Steel which is Britain’s largest manufacturer are seeking a £500m government bailout over the lockdown to save the industry.

Kinnick whose constituency includes Port Talbot steelworks, said that Tata have approached the Welsh and UK governments, Sky News reported.

The Treasury and the Department for Business, Energy and Industrial Strategy are considering the request from Tata Steel, Sky News reported.

Currently the Coronavirus Large Business Interruption Loan Scheme, only offers loans up to £50m if a business has a turnover of £45m.

Kinnock said this government must lift the cap to save the future of Tata Steel and more than 12,000 jobs, 4,000 in Port Talbot and over 8,000 in the UK.

The MP said, “Since the 2016 UK steel crisis the UK government has offered plenty of warm words about supporting our steel industry.

“Now is the time for ministers to finally start matching those words with actions.”

Dominic Raab was questioned last week over the future of British Steel during Wednesday’s PMQs. Raab said that the Chancellor is “looking carefully” at the industry.

A government spokesman said, “The government has put together a far-reaching package of support to help businesses through the coronavirus pandemic.

“We continue to regularly engage with businesses across all sectors, including those in the steel industry.”

Lucy Powell, Labour’s shadow minister for business and consumers said, “Steel is a vital sector for the UK in the jobs it provides and its role in Britain’s domestic manufacturing.

“UK produced steel is critical to ensuring our economy recovers quickly and to make our domestic manufacturing more resilient in the future.

“It is right for the government to work with the industry to protect employment, which is the lifeblood of communities, while ensuring taxpayer value for money.”

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