Government unveils £80m deal to help Redcar steel workers

Jeremy Corbyn has attacked the Government’s “failure” to intervene to save jobs at the Redcar steel plant, urging the Prime Minister to step in, as other governments have.

Sources told PA that the board had applied to wind up the Teesside business, with a formal announcement being made later on Friday.

An £80m funding package to support workers at SSI UK’s stricken steelmaking plant in Teesside is to be provided by the government although ministers have rejected an “unrealistic proposal” from the company for taxpayer support, with liquidation now a real risk.

He said: “The news on Monday that SSI United Kingdom had reached the decision to mothball the iron and steelmaking at the Redcar site for up to five years as a result of poor trading conditions and low world steel prices has been a hammer blow not only to the workers, but also their families and the local community”.

Full details of the package are still being discussed, but the money will be used to train the workers and enable other local businesses to grow and create jobs.

“The package we are announcing today will provide important support to workers and the local economy”.

The Government will also consider proposals put forward by the local taskforce being led by Amanda Skelton, Chief Executive of Redcar and Cleveland Borough Council.

A spokesman for the Community union said: “We have been saying for weeks that SSI is not fit for objective”.

“The Government’s responsibility has not ended with the announcement of this support package”.

Redcar MP Anna Turley thanked the Government for the funding, but she voiced grave concerns about the future of the steel plant following a move by SSI’s banks to take control of assets.

‘It should intervene to remove SSI and support an alternative approach that gives steel-making an improved chance of a future’.

Today it has been reported that the United Kingdom arm of SSI has gone into liquidation.

“The Government is able to ensure steel companies operate on a level playing field and it must use this opportunity to support the steel sector as I fear time is of the essence”.