Tata Steel is waiting for the government to respond to their deal that seeks about £500m government help to survive. It is Britain’s largest steelmaker. This rescue deal will make sure about 8,000 people do not lose their jobs. The struggling sector has been hit by the coronavirus lockdown. The UK business of Tata Steel is seeking government support so that no more job losses occur in the sector.
The company is contending to get a loan passed under the Treasury’s Project Birch. This scheme considers strategically bailing out certain important companies. A state loan is supposed to be issued to the group in the next few days and Tata steel being the UK’s biggest steel maker thus one of the biggest employers is seeking out the loan. Tata Steel is located at the Port Talbot in south Wales and other locations in Wales.
A government source has said that the discussions are still on and something will be finalized soon. But the source also mentioned ‘soon’ won’t arrive before a couple of weeks. The Project Birch involves Treasury officials looking out for options for the government to step in and support companies. The basic aim of the project is to make sure that there are no job losses faced by various sectors especially during this time when the economy all over the world has been hit by the pandemic.
This taxpayer’s support is offered to companies only after they have exhausted all the other schemes such as the government’s coronavirus emergency loan schemes. This scheme is sort of a last resort for the companies and the officials at Tata Steel are looking to confirm the deal but are not revealing any details as of now. They continue to seek government’s approval and the future days will tell the plans of the government.