Yahoo Finance Rees-Mogg in talks with UK steelmakers as fears grow for thousands of jobs
The business secretary, Jacob Rees-Mogg, has opened talks with Britain’s steelmakers amid concerns that thousands of jobs could be lost from the struggling industry.
The government confirmed on Monday it had entered discussions with Tata Steel, owner of the UK’s largest steelworks in Port Talbot, south Wales, and Jingye Group, which bought British Steel out of insolvency in 2020.
The Chinese company has agreed to maintain its current operations and job numbers as talks get under way, the Department for Business, Energy and Industrial Strategy (BEIS) said.
The company previously warned ministers that two blast furnaces at its facility in Scunthorpe, Lincolnshire, were not financially viable without support from the government.
About 4,000 people are employed at the site but thousands more depend on the company in its extensive supply chain. More than 3,500 are employed at the Port Talbot facility, owned by Tata Steel.
The exact sum Jingye Group is asking for is not known but insiders previously indicated to Sky News that a potential bailout could run into the “hundreds of millions”.
The steel industry suffered significantly from the wider economic downturn caused by the Covid pandemic and has been hit with soaring energy costs and rising inflation.
Tata Steel has previously called for financial help and wants £1.5bn in subsidies. Discussions between the company and the government took place under Boris Johnson’s premiership.
However, Johnson promised not to make any significant fiscal commitments before leaving office.
The government has provided more than £780m to the steel industry to help with electricity costs since 2013.
A BEIS spokesperson said: “We are working across the steel sector on achieving their sustainable and competitive long-term future.
“We recognise that businesses are feeling the impact of high global energy prices, particularly steel producers, which is why we announced the energy bill relief scheme to bring down costs.”
