Tata Steel seeks extra UK funding as Port Talbot furnace timeline slips

Tata Steel approached the Department for Business, Innovation, Science and Technology in recent weeks to request additional government assistance for its Port Talbot electric-arc furnace project, which has been set back by difficulties securing a grid connection. The plant, originally expected to be operational by early 2028, is now projected to start in late 2028 or early 2029 after the final blast furnace was closed in 2024.

The company had already received a £500 million grant in 2023 as part of a £1.25 billion investment aimed at creating a low-emission steel operation. Tata Steel warns that cheap imports, including higher quotas for Indian steel under the new UK-India free-trade agreement and competition from Vietnam and South Korea, are squeezing its UK business. Union leaders have highlighted the growing competitive pressure on the sector. The request for extra funding could revive scrutiny of the UK government's industrial policy, especially as British Steel has been nationalised and is costing taxpayers heavily.