PARLIAMENTARY DEBATE
Steel Industry - 11 September 2024 (Commons/Commons Chamber)

Under my chairmanship, the transition board has moved from discussion to delivery. Last month, I announced £13.5 million for supply chain, skills and employability funds. I also announced our business and community pledge scheme, bringing together over 50 organisations in support of affected workers.

I thank my right hon. Friend for beginning to deliver funds to support business confidence and provide a safety net for workers. Will she explain how that will support workers who are dealing with great uncertainty?

The two funds that have been announced are specifically for people in businesses and in the supply chain, because we know that they have already been affected by the uncertainty of the situation at Port Talbot. They will help people to retrain and reskill into new employment, and will help businesses to diversify and go into new markets if they are a primary customer of Tata Steel.

I know that my right hon. Friend will serve Wales admirably in her new role.

Llanwern steelworks in Newport is a key strategic site that manufactures world-class automotive steel and more, and it has so much potential. We all await the statement later, but can she outline what she has been doing, alongside the Department for Business and Trade, to secure future investment in Llanwern as part of ongoing discussions with Tata?

The Government absolutely understand the importance of Llanwern as a key manufacturing facility for steel products. We have worked with Tata Steel UK to ensure that Llanwern is clearly considered in plans for the future of steel in south Wales. My hon. Friend is a dedicated advocate for the workers at Llanwern, and I know that that she will follow closely the upcoming statement from the Secretary of State for Business and Trade.

I call the shadow Secretary of State.

Today the Government are expected to unveil details of their steel plan for south Wales. From what has been briefed to the press, it seems that the new deal is, at its core, the same deal—worth hundreds of millions of pounds—that was agreed by the last Conservative Government. At the time, the Secretary of State and the Welsh Labour party appeared to rubbish the deal, and suggested that a better one was possible. Does she now regret the Labour party’s previous criticism of the deal?

I do not recognise that characterisation of the deal on which the Business Secretary will make a statement later. He will make that statement to the House—I do not want to pre-empt it, because we are a party and a Government who will always come to the House first to make major announcements—but I am confident that he will set out a sustainable future for steelmaking in Port Talbot, in Wales and across the UK.

The fact remains that key parts of the deal, as it appears in the press, appear to be largely unchanged from what was agreed before, including almost £100 million to help steelworkers who might lose their jobs. In its negotiations with the last Government, Tata Steel was crystal clear that no other deal was possible. Moving forward, it is crucial that funding to help retrain those who will lose their jobs reaches them swiftly, so will the Secretary of State lay out the detail of how and when the money will be sent to those impacted?

I refer the hon. Gentleman to my previous answer. We had the transition board in place for nearly 10 months under the last Government and not a single penny went out the door to businesses or workers affected. Within weeks of my taking over chairmanship of the transition board, £13.5 million has been released to help supply chain businesses and workers. That is the first tranche, with further funds to come.

I call the Liberal Democrat spokesperson.

I welcome the Front Benchers to their places. They will know that the steel industry in Wales is just one of a number that have suffered in recent decades. Last year, the Industrial Communities Alliance said that tackling the effects of deindustrialisation in Wales has been hampered by competitive bidding, which forces local authorities in deprived areas to bid against each other, preventing partnership working and a more strategic approach. Will the Secretary of State confirm whether future rounds of the UK shared prosperity fund allocated to Wales will no longer be subject to competitive bidding?

This Government were elected on a manifesto that stressed a partnership approach with local authorities and an intention to stabilise the funding system, moving away from wasteful competition. Those are the principles we will seek to apply as we think about the future of local growth funding. As with all Government decisions regarding funding beyond March 2025, it is ultimately a matter for the spending review.

I call the Chair of the Welsh Affairs Committee.

Under the previous Government, the transition board met six times and formed two sub-committees, but did not distribute a single penny of the funding that was promised to support businesses and workers in south Wales. Will the Secretary of State provide an assessment of how the transition board has changed under her leadership?

I congratulate my hon. Friend on her election as Chair of the Welsh Affairs Committee, and I look forward to engaging with her and her colleagues as they take on their important work.

As I set out, we have released £13.5 million as the first tranche of funding from the transition board. That has changed the situation radically from discussion to delivery. That is what we promised; that is what we have delivered.