Government in advanced talks over £500m Tata Steel aid package

Published

2 years ago

September 2, 2023

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The government is in advanced talks with Britain’s biggest steel producer to hand over a £500m aid package aimed at securing the long-term future of steelmaking in south Wales.

Sky News can exclusively reveal that Whitehall officials and Tata Steel are close to agreeing a deal that would commit more than £1bn to the future of its Port Talbot steelworks, but which could ultimately result in thousands of job losses.

Sources said this weekend that the terms of an agreement were subject to change, but that there were hopes of finalising it as early as this month.

One insider suggested that Tata Steel had been trying to persuade the government to increase the proposed funding package in recent weeks.

Under the plans currently envisaged, the government would commit approximately £500m of public funding to the company, while Tata Steel’s Indian parent would sign off £700m of capital expenditure over a multi-year period.

Port Talbot employs about 4,000 people – roughly half of Tata Steel’s overall UK workforce of approximately 8,000.

Industry sources close to the discussions said the company had indicated that over the long term, as many as 3,000 of its British-based staff were likely to lose their jobs.

Electric arc furnaces, which Tata Steel would commit to building as part of the agreement with government, utilise different, less labour-intensive, processes to produce steel than traditional blast furnaces.

The government is said to have accepted during the discussions that some job losses would be inevitable as part of the transition to reducing carbon emissions, although an insider said on Saturday that a number of those could be through workers taking early retirement.

The final scope and timing of any redundancies would be negotiated between the company and trade union officials, and sources close to the process insisted that no decisions had been taken.

If a deal can be reached, it would mark the second time this year that the government has bankrolled investment in a manufacturing business owned by Tata Group.

In July, it agreed to commit several hundred million pounds to the company to construct a £4bn battery factory in the UK for its Jaguar Land Rover subsidiary.

Rishi Sunak, the prime minister, described the investment as “a massive vote of confidence” in British industry.

Ministers and Britain’s two biggest steelmakers have been in talks for months about handing over hundreds of millions of pounds of taxpayers’ money to fund the companies’ transition to greener production.

Initially, both Tata Steel and British Steel, its smaller rival, were offered £300m each in government support, but formal agreements have remained elusive.

British Steel’s Chinese owner, Jingye Group, announced hundreds of job losses earlier this year – a move which angered ministers because they coincided with discussions about state funding – but has also yet to reach a deal to secure its plants’ future.

The government originally sought to tie the issue of public funding to a moratorium on redundancies, but it was unclear whether any formal guarantees aimed at limiting job losses would be part of the Tata Steel funding package.

Sources said the offer to Tata Steel had been increased from £300m to about £500m during the course of the summer.

If completed, an agreement with the government would draw a line under years of uncertainty about the medium-term future of Port Talbot, although it was unclear whether the company would make specific commitments about the long-term as part of a deal.

As recently as May this year, Tata Steel warned of a “material uncertainty” over the future of its British business, citing a lack of clarity about potential government support among the factors raising doubts over its prospects.

In an interview with the Financial Times in July last year, Natarajan Chandrasekaran, the Tata Group chairman, said: “A transition to a greener steel plant is the intention that we have . . . But this is only possible with financial help from the government.

“We have been in discussions over the last two years and we should come to an agreement within 12 months.

“Without this, we will have to look at closures of sites.”

In 2020, the Treasury hired bankers and management consultants to draw up a blueprint for the future of the steel industry and advise on talks with Tata Steel about the future of Port Talbot.

During the pandemic, the company floated a plan that would have entailed the government injecting £900m into it in return for an equity stake of up to 50%.

There is not thought to be any equity-linked element to the current aid proposal.

Nevertheless, the proposed scale of the taxpayer support for Tata Steel’s UK operations illustrates the acute political sensitivity that continues to accompany the subject of British steelmaking.

With a general election less than 18 months away, and the Conservatives facing a battle to convince voters that it has a plan to restore the economy to sustainable long-term growth, the closure of one of the country’s most important manufacturing sites would be devastating.

In a letter to Jeremy Hunt, the chancellor, in December, Grant Shapps, the then business secretary, and Michael Gove, the levelling-up secretary, argued that retaining sovereignty over steel production was critical to the UK economy.

“Every other G20 nation has maintained domestic steel production and, while we do not think that this should come at any cost, we do believe it is in HMG’s interest to offer well-designed and targeted funding which unlocks private investment, achieves a good outcome for taxpayers, and enables transformed , decarbonised and viable domestic steel production to continue in the UK in the long-term,” Mr Shapps and Mr Gove wrote.

“We do not want to become reliant on steel sources elsewhere in the same way that energy security has become self-evidently important.

Figures from UK Steel, the industry body, revealed earlier this year that crude steel production in 2022 had fallen to 6m tonnes, its lowest level of output since the Great Depression of the 1930s.

A Tata Steel spokesman said in a statement issued to Sky News: “Tata Steel is continuing to discuss with the UK government a framework for continuity and decarbonisation of steelmaking in the UK amidst very challenging underlying business conditions, given that several of its heavy-end assets are approaching the end of life.”

“Given the financially constrained position of our UK business, such significant change is only possible with government investment and support, as also seen in other steelmaking countries in Europe where governments are actively supporting companies in de-carbonisation initiatives

The Treasury referred an enquiry from Sky News to the Department for Business and Trade, which has been contacted for comment.

UK

Ryland Headley: Man, 92, who raped and murdered Louisa Dunne in Bristol nearly 60 years ago, jailed for life

Published

10 hours ago

July 1, 2025

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Ryland Headley: Man, 92, who raped and murdered Louisa Dunne in Bristol nearly 60 years ago, jailed for life

A 92-year-old man has been sentenced to life with a minimum term of 20 years in prison for the rape and murder of an elderly widow nearly 60 years ago.

Ryland Headley was found guilty on Monday of killing 75-year-old Louisa Dunne at her Bristol home in June 1967, in what is thought to be the UK’s longest cold case to reach trial, and has been told by the judge he “will die in prison”.

The mother-of-two’s body was found by neighbours after Headley, then a 34-year-old railway worker, forced his way inside the terraced house in the Easton area before attacking her.

Police found traces of semen and a palm print on one of the rear windows inside the house – but it was about 20 years before DNA testing.

The case remained unsolved for more than 50 years until Avon and Somerset detectives sent off items from the original investigation and found a DNA match to Headley.

He had moved to Suffolk after the murder and served a prison sentence for raping two elderly women in 1977.

Prosecutors said the convictions showed he had a “tendency” to break into people’s homes at night and, in some cases, “target an elderly woman living alone, to have sex with her despite her attempts to fend him off, and to threaten violence”.

Headley, from Ipswich, who did not give evidence, denied raping and murdering Ms Dunne, but was found guilty of both charges after a trial at Bristol Crown Court.

Detectives said forces across the country are investigating whether Headley could be linked to other unsolved crimes.

Mrs Dunne’s granddaughter, Mary Dainton, who was 20 when her relative was killed, told the court that her murder “had a big impact on my mother, my aunt and her family.

“I don’t think my mother ever recovered from it. The anxiety caused by her mother’s brutal rape and murder clouded the rest of her life.

“The fact the offender wasn’t caught caused my mother to become and remain very ill.

“When people found out about the murder, they withdrew from us. In my experience, there is a stigma attached to rape and murder.”

Finding out her grandmother’s killer had been caught after almost six decades “turned my life upside down,” she said.

“I feel sad and very tired, which has affected the relationships I have with those close to me. I didn’t expect to deal with something of such emotional significance at this stage of my life.

“It saddens me deeply that all the people who knew and loved Louisa are not here to see that justice has been done.”

After her statement, Mr Justice Sweeting told Mrs Dainton: “It is not easy to talk about matters like this in public.

“Thank you very much for doing it in such a clear and dignified way.”

The judge told Headley his crimes showed “a complete disregard for human life and dignity.

“Mrs Dunne was vulnerable, she was a small elderly woman living alone. You treated her as a means to an end.

“The violation of her home, her body and ultimately her life was a pitiless and cruel act by a depraved man.

“She must have experienced considerable pain and fear before her death,” he said.

Sentencing Headley to life imprisonment with a minimum term of 20 years, the judge told him: “You will never be released, you will die in prison.”

Detective Inspector Dave Marchant of Avon and Somerset Police said Headley was “finally facing justice for the horrific crimes he committed against Louisa in 1967.

“The impact of this crime has cast a long shadow over the city and in particular Louisa’s family, who have had to deal with the sadness and trauma ever since.”

The officer praised Ms Dainton’s “resilience and courage” during what he called a “unique” case and thanked investigators from his own force, as well as South West Forensics, detectives from Suffolk Constabulary, the National Crime Agency and the Crown Prosecution Service (CPS).

Charlotte Ream, of the CPS, described Headley’s crimes as “appalling”.

She said Louisa Dunne “died in a horrifying attack carried out in the place where she should have felt safest – her own home.

“Mrs Dunne’s death continues to have a traumatic impact on her family members: the passage of time has not lessened their pain.

“For 58 years, this appalling crime went unsolved and Ryland Headley, the man we now know is responsible, avoided justice.”

Jeremy Benson KC, defending Headley, offered no personal mitigation on behalf of the defendant.

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Three members of Lucy Letby hospital’s senior leadership team arrested

Published

10 hours ago

July 1, 2025

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Three members of Lucy Letby hospital's senior leadership team arrested

Three managers at the hospital where Lucy Letby worked have been arrested on suspicion of gross negligence manslaughter.

They were in senior roles at the Countess of Chester Hospital in 2015 and 2016 and have been bailed pending further enquiries, Cheshire Constabulary said. Their names have not been made public.

Letby, 35, was found guilty of murdering seven children and attempting to murder seven more between June 2015 and June 2016 while working in the hospital’s neonatal unit.

Detective Superintendent Paul Hughes explained that gross negligent manslaughter focuses on the “action or inaction of individuals”.

There is also an investigation into corporate manslaughter at the hospital, which began in October 2023.

That focuses on “senior leadership and their decision-making”, Mr Hughes said. The intention there is to determine whether any “criminality has taken place concerning the response to the increased levels of fatalities”.

The scope was widened to include gross negligence manslaughter in March of this year.

Mr Hughes said it is “important to note” that this latest development “does not impact on the convictions of Lucy Letby for multiple offences of murder and attempted murder”.

He added: “Both the corporate manslaughter and gross negligence manslaughter elements of the investigation are continuing and there are no set timescales for these.

“Our investigation into the deaths and non-fatal collapses of babies at the neo-natal units of both the Countess of Chester Hospital and the Liverpool Women’s Hospital between the period of 2012 to 2016 is also ongoing.”

A public inquiry has also been examining the hospital’s response to concerns raised about Letby before her arrest.

In May, it was announced the inquiry’s final report into how the former nurse was able to commit her crimes will now be published early next year.

Earlier this year, lawyers for Lucy Letby called for the suspension of the inquiry, claiming there was “overwhelming and compelling evidence” that her convictions were unsafe.

In February, an international panel of neonatologists and paediatric specialists told reporters that poor medical care and natural causes were the reasons for the collapses and deaths.

Their evidence has been passed to the Criminal Cases Review Commission (CCRC), which investigates potential miscarriages of justice, and Letby’s legal team hopes her case will be referred back to the Court of Appeal.

UK

‘My lungs felt like they were filled with blood’: Stab victim reveals reality of knife crime

Published

20 hours ago

July 1, 2025

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'My lungs felt like they were filled with blood': Stab victim reveals reality of knife crime

As we pulled back the hospital curtain, he was hunched over and clearly in pain.

He had climbed off the hospital bed to greet us with a polite smile, then hobbled back to lie down again.

Every breath was uncomfortable, but he wanted to share the horrible reality of knife crime.

“I’ve never in my life been stabbed so I don’t know how it’s meant to even feel,” he said.

“The pain came when I realised the blood’s just spitting out of the side of my rib cage and that’s when I started panicking.

“My lungs felt like they were filled with blood… I thought each breath that I take, I’m going to drown in my own blood.

“I just felt as though I was slowly slipping away.”

Paramedics helped save his life and got him to the hospital in Manchester.

Sky News cannot name the young victim or go into the details of the attack because the police are investigating his case.

We were alongside a support worker called Favour, who is part of a growing team called Navigators. They go into hospitals to help young victims of violence.

While checking on how his recovery is going, she gently asked what he wanted to do next.

“You should have the right to feel safe,” she said to him.

“So don’t blame yourself for what happened… we are going to be there to help you.”

‘Scarring and traumatic’

In a corridor outside the major trauma ward at the Manchester Royal Infirmary, Favour said: “They are often scared, often really tired from being in hospital.

“It does stay with you, not just for a couple of weeks, but it can go on for months, years, because it is something very scarring and traumatic.

“Having someone to talk to, being able to be very vulnerable with… that can lead you to find different spaces that are safe for you, can make a huge difference.”

In the adjacent Children’s Hospital in Manchester, we met the clinical lead at the Greater Manchester Violence Reduction Unit.

Dr Rachel Jenner is a senior consultant who expanded her emergency department work into the wider mission of violence reduction after treating one particular young stab victim.

“When he arrived at the hospital, he was obviously very distressed and stressed,” she said. “A little bit later on, when things were stable, I asked him if he wanted me to call his mum.

“When I asked that question, he just kind of physically crumpled on the bed and just looked like the vulnerable child that he was, and that was really impactful for me.”

‘Positive results’

The Violence Reduction Unit was established in 2019 with a commitment from the city’s authorities to work together better to prevent violence and deal with it efficiently when it occurs.

Dr Jenner still treats young knife crime victims, but revealed the number of stab-related admissions is falling in her hospital.

“The trend is downwards,” she confirmed. “We’ve definitely seen some positive results.”

The latest statistics in England and Wales show the number of hospital admissions for assault by a sharp object fell by 3% to 3,735 admissions in the year ending September 2024.

“We’re never complacent,” Dr Jenner said. “You reality check yourself all the time, because obviously if… someone gets stabbed, then it’s quite possible that I’ll be treating them.”

She said the Navigators are crucial to working with young patients.

“They have a really different way of engaging with young people, they’re much better at it than many other professionals,” she said.

“It’s not a one-size-fits-all model, they actually wrap around that support according to circumstances… that’s a really positive improvement.”

Tacking violence ‘like infectious disease’

Dr Jenner added: “We try and take a public health approach to violence reduction. In the same way that we would address an infectious disease, if we can use those methods and principles to look at violence.

“Not just reacting when it happens, but actually looking at how we can prevent the disease of violence, that in the long term will have a bigger impact.”

The key is teamwork, Dr Jenner said. Collaboration between the police, community leaders, victim support, health workers and people in education has noticeably improved.

Children describe knife crime threat

The hospital also sends consultants into schools to teach pupils how to stop bleeds as part of an annual nationwide initiative that reaches 50,000 young people.

At a Stop The Bleed session in Bolton, Greater Manchester, we met 11 and 12-year-olds growing up with the threat of knife crime.

One Year 7 boy said: “There was a stabbing quite near where I live so it does happen, but it’s very crucial to learn how to stop this bleed and how to stop deaths.”

Another two friends talked about a boy their age who had been involved in an incident with a knife.

“No one would expect it for someone that young,” one said. “They’re just new to high school, fresh out of primary, and they shouldn’t just be doing that, too young.”

‘We are dealing with it every day’

Their school has decided to tackle the problem of knife crime head-on rather than pretend it isn’t affecting their pupils.

The pastoral lead at the school, Sanaa Karajada, told Sky News: “We are dealing with it every single day, so we have policies and procedures in place to prevent any escalations in our schools or in the community.

“It is very, very worrying and it’s upsetting that [students] are having to go through this, but you know we’ve got to be realistic… if we are shying away from it, we’re just saying it’s not a problem.

“But it is a problem within the community, it’s a problem in all of the UK.”

The government has pledged to halve knife crime within a decade.

These signs of progress may offer some hope, but there is still so much work to do.