The government has pledged £13.5m to help workers amid Tata Steel job losses, as a minister vowed “all options are on the table”.
Funding will go to supporting supply chain businesses and workers affected by job losses in connection with the Indian-owned manufacturer changing its production systems.
Tata is switching to a greener form of steel production at its Port Talbot plant, in south Wales, which needs fewer workers – with unions campaigning to minimise thousands of job losses.
Welsh secretary Jo Stevens made the announcement today ahead of the second meeting of the Tata Steel Transition Board.
Stevens, who is also chairwoman of the board, told BBC Radio Four: “Everything is on the table in terms of what we want to talk to Tata about, I can’t go into kind of the commercial sensitivities of it, but we want to protect as many jobs as possible.
“I want to see all types of steel products made in the United Kingdom, and I want to see as many as possible made here in Wales.”
She added: “As part of the overall discussions with Tata, we want to secure investment from the private sector – Tata being an obvious partner – into the future of steel making in the UK.
“And so I think what I can say is that all options are on the table. That better deal has to involve looking at every possible option.”
The aim of the funding is to support local businesses that are reliant on Tata Steel as their main customer, while money will also be made available to workers affected by the plans.
It will be aimed at helping people find new jobs, access training and upskill and requalify.
Stevens also confirmed more than 50 businesses have signed a pledge to support any workers forced to leave their jobs in the steelworks.
While negotiations between the government and Tata Steel over the future of the Port Talbot works will continue separately.
“We will act decisively to support workers and businesses in Port Talbot, working with the Welsh government, unions and the wider community,” she said.
“Steelmaking is the lifeblood of communities in Wales, but so too is the support of local businesses. What they are offering will make a real difference to suppliers and staff.”
Business secretary Jonathan Reynolds added: “This is an important step towards supporting workers affected by Tata Steel’s transition and businesses in the wider supply chain.”
Tata Steel UK’s chief executive Rajesh Nair, said: “The transition board plays a very important role in supporting the transformation of our business to low-CO2 steelmaking and encouraging regeneration and inward investment to the area, whilst helping to mitigate the impacts those changes may have on our people, our supply chain and our communities.”
Community Union’s national officer Alun Davies said: “Stevens has acted at pace to ensure that this first tranche of funding can be released as swiftly as possible, and we thank her for her steadfast commitment to our steel communities.
“Whilst we welcome this announcement, it is important to stress that our wider position on Tata’s bad deal for steel has not changed. We will continue to oppose the company’s damaging proposals, and we will fight to protect jobs. It remains our firm belief that no compulsory redundancies are necessary, and that an alternative approach is still possible.”