New £11m fund to support Port Talbot’s transition to greener steelmaking

Daniel Bevan - Editor

Subscribe to the Businessin Wales daily newsletter for FREE here.

A new £11.78 million investment fund has opened for businesses in Port Talbot, aimed at supporting job creation and attracting long-term private investment as the town’s steel industry transitions to greener production.

The Economic Growth and Investment Fund combines £6.78 million from the UK Government with £5 million from Tata Steel UK.

It targets companies able to provide skilled, well-paid employment and is intended to complement regeneration work led by the Welsh Government and Neath Port Talbot Council.

The fund forms part of a wider package overseen by the Tata Steel / Port Talbot Transition Board, chaired by Jo Stevens MP, which was established to protect the local economy during the company’s shift to electric arc steelmaking.

Since August 2024 the board has allocated £122 million, £102 million from the UK Government and £20 million from Tata Steel, into programmes covering retraining, supply-chain support and regeneration.

Existing schemes have already funded the creation of 85 start-ups, provided grants to 59 supply-chain firms and supported 141 local businesses, alongside thousands of training courses for people affected by the restructuring.

Secretary of State for Wales, Jo Stevens MP, said: “This new fund is a powerful example of what can be achieved when government and business work together to deliver for communities.

“Backed by over £11.7 million, it will help local businesses grow, create high-quality jobs and attract more new investment to Port Talbot.

“As a government we have acted decisively to ensure that steelmaking would continue in Port Talbot and also to provide extensive financial support for steelworkers, supply chain businesses and the wider community.

“So far £122 million has been allocated by the Port Talbot Tata Steel Transition Board resulting in thousands of grants distributed locally for retraining, business investment and regeneration projects.

“We said we would back the steelworkers of Port Talbot, their families and businesses dependent on Tata Steel and we have delivered on that promise.”

Tata Steel UK Chief Executive, Rajesh Nair, said: “Tata Steel UK’s contribution to the new Economic Growth and Investment Fund reflects our ongoing commitment to supporting the long‑term development of the Port Talbot area as we transition to greener steelmaking.

“This new fund will help encourage businesses to come into the area, grow, innovate, and create high‑quality local jobs.

“We are proud to work alongside the Transition Board and our partners across government and local authorities to strengthen and diversify the local economy, support skills development and attract the long‑term investment that will secure a sustainable future for Port Talbot and its communities.”

Cllr Steve Hunt, Leader of Neath Port Talbot Council, said: “The Economic Growth and Investment Fund will provide crucial backing for local industry as we diversify and transition our economy towards new sectors and opportunities.

“The funds already launched by the Tata Steel / Port Talbot Transition Board have made a huge impact and our Economic Development team will again provide support and advice to interested parties.”

While earlier business resilience and supply-chain funds are now largely committed and paused to new enquiries, skills and start-up programmes remain open.

The investment comes alongside a wider £2.5 billion UK Government commitment to decarbonise the national steel industry, including £500 million towards the new electric arc furnace currently under construction at Port Talbot.