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Tata Steel crisis: Government urged to step in as 40,000 jobs put at risk

Calls for the government to step in and provide financial assistance to the UK’s ailing steel industry are intensifying amid claims that 40,000 jobs are at risk if a rescue deal cannot be reached.

The predictions underline the urgent need for action, following Tata Steel’s decision on Tuesday that it is to pull out of its UK steel interests which it claims are costing it £1m a day.

Sites at Port Talbot in Wales, Rotherham in South Yorkshire, Corby in Northamptonshire and Shotton in Deeside are all at risk of closure if a suitable buyer cannot be found in the coming weeks, threatening 15,000 jobs directly along with a further 25,000 across the wider sector.

Tata Steel claims that the financial woes facing the UK’s steel sector are so significant that the value of its steel interests are ‘almost zero’. Such claims will make it difficult for the Indian multinational to find a willing buyer, leading to calls for the government to provide financial assistance and incentives until one can be found.

However, the government has stopped short of claiming that bringing the steelworks back into government hands in the solution.

Commenting on the crisis, Business Secretary Sajid Javid explained that the government is considering all the options at its disposal, but that re-nationalisation was not on the cards.

He said: “I think it’s absolutely clear that the UK steel industry is absolutely vital for the country and we will look at all viable options to keep steelmaking continuing in Port Talbot.”

“At this stage, given the announcement from Tata has just come out, it’s important I think we talk to them properly and understand the exact situation and we look at all viable options

“I don’t think nationalisation is going to be the solution because I think everyone would want a long-term viable solution.”

However, many believe that the government are not doing enough, and that their sluggish response has worsened an already dire situation for the steel sector.

With ministers due to meet later on today to discuss possible solutions, Roy Rickhuss of the Community trade union, was critical of the government’s inertia and said: “Seeing confusion and mixed messages from ministers will only increase the worry of steelworkers across the UK.

The fact that one minute they are saying they are looking at all the options and the next they’re saying some form of nationalisation is not a solution shows a government divided and without the political will to take the tough action necessary to save our industry.“