Keir Starmer’s rejection of Tata Steel puts Port Talbot in a tizzy as Keir Starmer tries to rescind the deal

The future of Britain’s largest steelmaker is now in doubt after Sir Keir starmer criticized a controversial government rescue deal.

Tata Steel and Rishi Sunak reached an agreement earlier this year, in which £500,000,000 of state assistance was provided to Tata Steel in exchange for the switch to electric-arc furnace production.

The prime minister called a snap election before the agreement between Tata, the government, and Tata had been approved. Sources say that the deal is unlikely to be completed before the July 4 ballot. Whitehall officials, however, are examining whether this is possible.

Labour being well ahead in polls, a Starmer led government will likely now have to ratify this agreement. He attacked the Conservative deal in Wales last week, and promised to “fight” for each and every job there, and the future of the steel industry here in Wales. Labour is expected to clarify its position regarding Port Talbot this week.

Switching to greener EAF would ensure the future of an important employer in a region of the UK, where steelmaking is a major economic force. This move will result in the loss of 2,800 jobs, but Indian executives from Tata are insistent that it is necessary to stop Port Talbot’s daily losses of £1,000,000.

Executives have warned that Tata may withdraw from the UK if a deal is not reached. The company also employs another 5,000 workers across 13 sites located in the Midlands and Northern Ireland.

Roy Rickhuss said Starmer’s comments “demonstrated that Labour is the only political party who will stand up for workers”.

He said: “He was absolutely correct that it’s not too late for the steel company to reverse course and put the needs and concerns of the steelworkers and country first.

Roy Rickhuss, a union leader, said: “Labour is only party who will stand up for workers.”

Our steel industry is in need of labour.

Labour Party sources insist that despite Rickhuss’s comment, Starmer’s remarks shouldn’t be interpreted as a de facto endorsement of the multi-union proposal, which envisions Port Talbot blast furnaces operating until 2032.

Tata has rejected such a plan, claiming that it would add an extra £1.6 billion to the company’s costs.

This weekend, Labour declined to comment. “The deal offered by the government is a bad one. “We believe in a more favorable deal, but do not support the multi-union plan,” said a source.

Sources close to Tata Steel dismissed the possibility of a “better deal” or “third way”.

Tata Steel wants to adhere to the September deadline for blast furnace production at Port Talbot.

The Indian company insists on sticking to the plan it agreed to with the Conservative Government to close Port Talbot’s remaining two blast furnaces, which are scheduled to be closed by September.

Sources familiar with the matter said that if a future Labour government tried to impose a new plan on Tata, its executives would consider closing not only Port Talbot but also all UK operations.

Tata Steel UK’s chief executive Rajesh Nair warned employees in a letter on Friday that the outcome of the general elections would not affect the timing or decision to wind down the heavy-end operation, where Port Talbot’s two remaining blast fuses operate.

Tata Steel has declined to comment.