Steelworks closure "could cost taxpayer £6 million"

The Wentworth and Dearne MP met business minister Anna Soubry (pictured) on Monday at the firm’s Aldwarke plant.

He said business secretary Sajid Javid should held “fill the business rates black hole” caused if the town lost Tata.

Mr Healey wrote to Mr Javid this week, pointing out Tata was due to pay £3.2 million in rates this financial year on five properties in Rotherham.

This amounted to four per cent of the entire business rates collected in the borough.

Under the current business rates system, with central-local government sharing the risk of falling rates 50-50, the firm pulling out of Rotherham would mean £1.6m in direct loss of borough council income and could mean an increase of 1.8 per cent in council tax to cover the shortfall, Mr Healey said, with the effect set to double when the system changes in 2020.

“Beyond this, there are a further 100 or so Rotherham-based companies involved in the supply chain to Tata whose annual rates bill is around £2.4 million,” Mr Healey added.

“Altogether the closure of this firm could lead to a £5.8 million reduction in business rates raised.”

Mr Healey said Mr Javid should guarantee to fill the business rates gap to “demonstrate your support for UK steel and UK steel communities”.

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