Steel job cuts: support package unveiled

There will be up to £6m of taxpayer support to train workers and help businesses in Scunthorpe, while Tata will spend £3m to help create jobs in the Lincolnshire town.

Earlier this week, Tata announced that is cutting 900 cuts at its Scunthorpe plant, along with 270 in Lanarkshire, effectively ending steel making north of the border.

Tata has also earmarked £1.5m to support job creation in steel communities around its Dalzell and Clydebridge sites in Scotland. The UK and Scottish governments are discussing what further help they could provide.

Unprecedented

Business Secretary Sajid Javid said: “The government has no intention of simply standing aside whilst the steel industry faces global challenges on a scale unprecedented in recent years. We will do everything we can to help workers and to ensure a level playing field for the industry.”

The government has asked Baroness Liz Redfern, leader of North Lincolnshire Council, to lead a taskforce to co-ordinate the support programmes and consider whether more support is needed.

She said the £9m pledged would “provide a significant boost” to the local economy, adding: “We intend to work quickly to help people who have lost their jobs to ensure that every element of support is available, whilst at the same time encouraging new businesses to start and grow in North Lincolnshire.”

New jobs

Karl Koehler, chief executive of Tata European operations, said: “We are committed to doing everything in our power to support those impacted and through UK Steel Enterprise we will help create new jobs in the affected local communities.”

Tata blames the job cuts on cheap imports of Chinese steel, the strong pound and high electricity prices.

It is not the only steel company to cut jobs: 1,700 posts are being axed at the SSI plant in Redcar, with a similar number under threat in the West Midlands after Caparo called in administrators.