Talks continue over Government rescue package for British Steel in Scunthorpe
It's understood the business secretary Grant Shapps is looking for guarantees on jobs before signing off on the deal
It's understood the business secretary Grant Shapps is looking for guarantees on jobs before signing off on a rescue package that would secure the future of British Steel in Scunthorpe.
As we reported last week the Government is thought to be to close to agreeing a multi-million pound grant for the steel industry.
Mr Shapps wants a guarantee that UK jobs will be safeguarded for ten years if they're to receive taxpayer funding to decarbonise the industry .
A 6 month freeze on any redundancies is also likely to be asked for.
In return it's believed British Steel and Tata will get £600 million pounds of state aid. That money would be linked to replacing blast furnaces at the company's sites with 'greener' machinery.
Unions have reacted to the latest developments:
Roy Rickhuss CBE, General Secretary of the steelworkers’ union Community, said:
“The reports about the Government requiring steel companies to protect jobs in order to receive financial support are welcomed.
“We call on Tata and British Steel to engage meaningfully with this offer and negotiate with government to get a deal over the line. Whilst these discussions are ongoing the companies must protect jobs and their full industrial capacity.
“Steelworkers had enough of warm words – we need action. Community will continue to fight for our members’ jobs and for our steel industry.”