The UK government is in talks with Tata Steel, Britain's biggest steel producer, to hand over a £500m aid package aimed at securing the long-term future of British steelmaking following months of uncertainty.
According to a report by Sky News, Whitehall officials and Tata Steel are close to agreeing a deal that would commit more than £1bn to the future of its Port Talbot steelworks, but which could ultimately result in thousands of job losses.
Sources said this weekend that the terms of an agreement were subject to change, but that there were hopes of finalising it as early as this month. One anonymous source suggested that Tata Steel had been attempting to persuade the government to increase the proposed funding package in the last month, which followed months of negotiations between the two parties regarding required funding for a viable future.
Under the plans currently envisaged, the government would commit approximately £500m of public funding to the company, while Tata Steel's Indian parent would sign off £700m of capital expenditure over a multi-year period.
Source: Sky News