UK government will offer financial aid to save steelworks

The British government is ready to step in with state financial support to save the Port Talbot steelworks, UK business secretary Sajid Javid has said.

Mr Javid signalled that ministers were working on plans to reduce energy costs and take on some of the pension liabilities in an effort to attract a buyer for the loss-making steel maker.

Labour has called for Mr Javid’s resignation after he said he was aware the plant’s owners, Tata Steel, were meeting last week in Mumbai to discuss the future of its UK operations but chose to go ahead with a trip to Australia.

Mr Javid played down suggestions that Tata could close down its UK operations, with the loss of 15,000 jobs, in as little as six weeks if a buyer was not found in time.

However, he acknowledged that the government would have to come forward with some financial assistance if there was to be a deal.

"Tata will issue an offer document very soon. Alongside that, the UK Government know – I've known for a while – that we're also going to have to offer support to clinch that buyer and give that steel plant a long-term, viable future," Mr Javid told BBC1's The Andrew Marr Show.

– (PA)