Start-up business fund launched for Port Talbot steelworkers
Welsh steelworkers and their families can access a newly-allocated £13 million fund from the Tata Steel/Port Talbot Transition Board.
- New grant fund to help workers and their families set up their own businesses.
- Newly-allocated £13m from the Transition Board will also support local businesses to grow and diversify.
- Commitment is part of £26.5m announced in four months under this government, part of £80 million in Budget to fully fund the Transition Board and to support workers.
Steelworkers and their families in the Port Talbot area will be helped to start up new businesses with a new multi-million pound fund launched by the UK Government.
Welsh Secretary Jo Stevens has announced another £13m from the Tata Steel / Port Talbot Transition Board to provide non-repayable grants of up to £10,000 for workers, families and businesses affected by the closure of the blast furnaces.
As well as the business start-up fund, two more new support schemes targeted directly at firms in the Port Talbot area and businesses in the Tata supply chain will be funded by the next £13m, with non-payable grants of £2,500-£250,000 available.
It is the second announcement of funding and follows the £13.5 million to support supply chain businesses find new markets and workers affected to re-train announced in August.
The Welsh Secretary made the announcement after chairing her third meeting as chair of the Transition Board earlier this week (Thursday 14 November).
There are three parts to the new fund launched by the Welsh Secretary:
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A business start-up fund which will enable Tata Steelworkers, their immediate family members and people in the supply chain to receive support, guidance and to access a grant. People looking to set up new firms ranging from plumbing and electrical to technology companies will be able to access non-repayable grants of up to £10,000.
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A new business growth fund to support firms already in operation who are seeking to increase their role in the local economy. Grants available will range between £25,001 and £250,000 tailored to the specific needs of each business.
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A business resilience fundproviding targeted assistance to local businesses affected by the ongoing transition at Tata Steel to diversify into new markets, create new jobs and to find opportunities in emerging sectors such as low carbon energy. The fund can be accessed by small businesses like local shops or cafes or by larger companies like construction firms affected by the Tata Steel transition with grants ranging from £2,500 to £25,000.
Welsh Secretary Jo Stevens said:
As a government we are determined the Transition Board delivers for the steelworkers of Port Talbot, for the region’s businesses and for the community.
This remains a really difficult time for workers in Port Talbot and their families. Many of them will have aspirations to set up their own businesses or become self employed and the £13m released today will provide vital backing for them to make their plans a reality.
We said we would back workers and businesses affected by the transition at Port Talbot and we are doing so with more than £26m announced since July.”
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans said:
We continue to work with the UK Government and local partners to ensure that our targeted support has the broadest and deepest positive impact on those affected by the transition to an electric arc furnace in Port Talbot.
Speaking to many across the local community, I know what a difference extending available funding to immediate family will make. This is part of our commitment to doing everything within our power to support businesses, households and communities to bounce back and ensure that Port Talbot and the surrounding area continues its proud history as a vital cog in the Welsh economy.
Neath Port Talbot Council Leader, Cllr Steve Hunt said:
I keenly welcome the announcement of these funding packages to support both start-ups and existing businesses across our community. The steelworks have been a lynchpin for our economy for over a century and so changes on this scale impact not only directly-affected workers at Tata Steel, but many other closely connected companies.
Steel will remain very important to Port Talbot moving forwards, but it is also critical that as a Transition Board we enable enterprise across a range of sectors to respond to current circumstances and to opportunities such as the Celtic Freeport
As well as announcing the first two blocks of funding, the UK Government confirmed in October’s Autumn Budget that it had protected £80 million to fund the Transition Board.
The UK Government has also reset the relationship with the Welsh Government, as well as with unions and other local partners, to work together to deliver for the workers affected.
ENDS
NOTES FOR EDITORS
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An £80 million support fund is being provided by UK Government through the cross-government Transition Board to support workers and businesses affected by Tata Steel’s move to greener steelmaking.
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A digital information hub signposting support for workers and businesses affected by the transition is available at Tata Steel Transition Information Hub - Neath Port Talbot Council (npt.gov.uk)
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Businesses and individuals can register an interest in the funds or send any enquiries to the following email address: [email protected]. Further details on eligibility and how to apply for the new funds will be announced soon.
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Tata Steel announced proposals in September 2023 to invest £1.25 billion, including a UK Government grant worth up to £500 million, to enable greener steel production at Port Talbot.