Government cash to help Tata Steel buyers

The Department for Business, Innovation and Skills said it would make a support package “worth hundreds of millions” available to potential buyers.

It said it was ready to support a “credible private buyer” and offer finance on commercial terms to deliver long-term investment in the future of Tata.

Business secretary Sajid Javid said: “This government is committed to supporting the steel industry to secure a long-term viable future and we are working closely with Tata Steel UK on its process to find a credible buyer. 

“The detail of our commercial funding offer is clear evidence of the extent of that commitment.

“Ministers have visited Tata Steel sites across the country and the pride and dedication of the highly-skilled men and women working there is obvious to see.

“We have already delivered on energy compensation, on tackling unfair trading practices and on procurement of British steel, and we will keep on going further to support this vital industry.”

Three potential deals are on the table to save the company’s UK plants including those in Rotherham.

A management buyout plan by Port Talbot plant boss Steve Wilkie and other staff emerged on Wednesday.

Mr Wilkie was previously behind a survival proposal rejected in March by Tata’s board in India.

Meanwhile, the Financial Times reported that representatives from investor Greybull Capital had visited Rotherham last week.

In addition to taking a minority stake, the UK and Welsh government said they are also willing to consider additional grant funding support, for example to support the development of power plant infrastructure, energy efficiency and environmental protection measures, R&D and training.

The government also said it was working with the pension scheme trustees of Tata Steel and British Steel to minimise any pension impact on the purchaser.

Chris Williamson, Rotherham’s Community union branch secretary, said: “This announcement is obviously great news. We still need the government to work with us and our union officials because until the deal is done we can’t take anything for granted.

“But obviously, the government can see the light at the end of the tunnel. It’s taken that black cloud away in some respected but there’s still a long way to go.

“They have said they will provide pensions and commercial help as part of the package which is a great incentive to anybody wanting to come in.”

John Healey, MP for Wentworth and Dearne, said: "I welcome this announcement by the Government as it shows that, after weeks of dragging its feet, it has finally recognised how vital this industry is to the UK economy. 

"Anything that makes the chance of a deal more likely is good for workers and their families who are living through a period of intolerable uncertainty about their future.

"The offers on the table for Rotherham and Stocksbridge have come as no surprise to people in the region given the high quality of South Yorkshire specialty steel.

"What we need to see now from Government is swift action to ensure that UK steel gets the long-term investment needed to protect jobs and communities."