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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.

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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.

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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.

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Police rehearsed a knife attack scenario on a train line in March – here’s what went differently this time

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Police rehearsed a knife attack scenario on a train line in March - here's what went differently this time

British Transport Police held an emergency exercise for press officers in March, which ironically involved a stabbing on a train travelling south near Huntingdon.

In the training drill, the train stopped immediately between stations when a passenger pulled the emergency cord.

It took police 25 minutes to reach the train and casualties, far longer than the eight minutes in which Cambridgeshire firearms officers reached the scene at Huntingdon station.

Follow latest: ‘Nothing to suggest’ terror attack, police say

Chris Webb, a crisis communications expert who helped run the exercise, said: “People think if you pull the emergency cord on a train it stops immediately, but that’s not what happens these days.

“As soon as the driver knows there is a problem, he or she radios the line operator HQ and they discuss where to stop.

“The decision last night was to keep going to Huntingdon station, where it was much easier for armed police to get on.”

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Forensic investigators at Huntingdon train station in Cambridgeshire
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Forensic investigators at Huntingdon train station in Cambridgeshire

He added: “It must have been awful for passengers when the train kept going for another ten minutes or so.

“It’s always a balance. It might have prolonged the attack, but stopping in the middle of nowhere can mean the attack stops but it’s much more difficult for the emergency services to get there.”

Mr Webb, former head of news at Scotland Yard, said such exercises are held regularly by train operators.

A similar drill was carried out on the London Underground weeks before the 7/7 bombings in 2005.

“There are always lessons to learn but you cannot guard against everything.”

In the training exercise in March the suspect was a white man with mental health issues. He was shot dead by police.

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‘Two suspects are British nationals’

Read more:
What we know so far about the Huntingdon train stabbings
Eyewitness recalls horror attack on high-speed train

What happened in the Huntingdon attack?

Police triggered the Plato code to all emergency services in their initial response to the Huntingdon train stabbing, but that did not label it a terrorist attack.

Plato is called for a major incident where it’s thought a suspect is on the loose and has already, or is liable to, cause serious injury.

Plato does not denote a terror attack, though it is often used in terrorist incidents.

A forensic investigator on the platform by the train at Huntingdon train station in Cambridgeshire
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A forensic investigator on the platform by the train at Huntingdon train station in Cambridgeshire

In a Plato response paramedics, fire fighters and other first responders are sent to a safe rendezvous point while armed police go in and deal with the suspect.

Plato depicts a situation where unarmed responders are vulnerable and are kept back until it is safe to approach casualties.

There are exceptions and it’s understood the East of England Ambulance Service has a special Hazardous Area Response Team (HART) which was allowed to accompany armed police onto the platform where the two suspects were arrested last night.

Once other first responders were allowed in, Plato was called off – an important part of the operation.

Plato was called during the initial response to the Manchester Arena bomb attack in 2017, but the fire service was not told it had been called off for two hours and that meant its officers did not go in to help with the rescue.

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‘I thought I was going to die’: Passenger tells of panic during knife attack on train

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'I thought I was going to die': Passenger tells of panic during knife attack on train

A student has told how she thought she “was going to die” during a mass stabbing on board a high-speed train.

Amira Ostalski was travelling to London for a Saturday night out with her friend Vanessa on board the “very busy” 6.25pm Doncaster to King’s Cross LNER service.

She told Sky News correspondent Dan Whitehead they were “listening to music, just having a good time”, when “panic and chaos” broke out in her carriage, Coach G, between Peterborough and Huntingdon.

Follow latest: Moment train attack suspect was arrested pictured

“I see five rows ahead of us a guy in a white t-shirt just jumps out of his seat,” she said. “People are screaming, ‘he’s got a knife’…. I’m guessing he stabbed the person right in front of me.”

Ms Ostalski said she came within 2m of the attacker but only caught a glimpse of him adding: “He was just a black bearded guy wearing all black and a hoody.

Woman who saw attack on train at Huntingdon tells Sky News of her experience
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Woman who saw attack on train at Huntingdon tells Sky News of her experience

“I didn’t see the knife he was holding. I’m guessing because it was already in the body or something.”

She said she “started running” and was “trying to calm everyone down” because there was a young boy, around six years old, who hid in the toilets with his mum.

“Everyone’s running. A guy next to me is holding his arm saying he’s been stabbed. He was running. I see people covered in blood,” she said.

“Everyone was shocked, everyone was terrified. People wanted to know what was going on, everyone’s pushing and shoving. Everyone’s getting trampled.”

Woman who saw attack on train at Huntingdon tells Sky News of her experience
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Woman who saw attack on train at Huntingdon tells Sky News of her experience

Ms Ostalski said she heard some people crying on the phone “in tears and in shock, thinking they’re going to be stabbed”.

“It was horrific, it was really horrific because we had no idea where he was and the conductor who tried to stop him, he got stabbed as well.

“We felt that we were not safe because we were trying to get the train to stop but it wasn’t stopping.”

Route of the 6.25pm London North Eastern Railway (LNER) service between Doncaster and London King's Cross
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Route of the 6.25pm London North Eastern Railway (LNER) service between Doncaster and London King’s Cross

Ms Ostalski said she ran into the buffet car where she picked up a metal tray to protect herself and her friend.

“I was honestly so petrified. I thought in that moment it was the last time I was ever going to be alive. I thought I was going to die,” she said.

Read more:
Police rehearsed train knife attack scenario in March
What we know so far

Ms Ostalski said she saw the attacker again when the train was stopped at Huntingdon station by the door, holding a bottle in his left hand.

“He just looked so calm and I think that was the most terrifying thing,” she said.

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Armed officers were seen running along the platform at Huntingdon station towards the train carriages after multiple people were stabbed on board.

Moment of suspect's arrest
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Moment of suspect’s arrest

Police declared a major incident and armed officers can be seen in video footage sprinting along the platform.

Ms Ostalski said she thought she and the other passengers were safe when the train was evacuated.

But when she reached the car park, she turned around and saw the attacker jump the fence and start coming towards them.

“I have to admit, the police came really quickly and managed to detain him,” she said.

“I saw them running then took the knife and he got tasered and fell right on the spot.”

Two men born in Britain have been arrested over the attack, which police do not believe was motivated by terrorism, but Ms Ostalski said she only saw one of them.

A total of 11 people have been treated in hospital for their injuries, while two people remain in a life-threatening condition.

Ms Ostalski said she finally found safety in a taxi but will remember the ordeal for the rest of her life.

“Honestly, I’m scared to sit on a train,” she added.

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‘They’ve got a knife, I’ve been stabbed’: Eyewitness recalls horror attack on high-speed train

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'They've got a knife, I've been stabbed': Eyewitness recalls horror attack on high-speed train

A passenger who witnessed a mass stabbing on board a high-speed train heading for London told Sky News he heard someone yelling: “They’ve got a knife. I’ve been stabbed.”

The witness, who gave his name as Gavin, said there were “extremely bloodied” people and police shouting “get down, get down!” as passengers scrambled to leave the train.

Ten people were taken to hospital – nine with life-threatening injuries – after the incident on the 6.25pm LNER train from Doncaster to London King’s Cross on Saturday.

Two people have been arrested and counter-terrorism police have been called in to join the investigation.

Sky News correspondent Gurpreet Narwan at the scene said some of the first-hand accounts were “quite terrifying”.

Armed police, transport police, air ambulances and paramedics all attended the scene. Pic: PA
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Armed police, transport police, air ambulances and paramedics all attended the scene. Pic: PA

“We are hearing about people trampling over each other. We are hearing about passengers hiding in the toilets,” she said.

Gavin said: “The armed police were pointing to the suspect as we came off the train.

More on Huntingdon Train Stabbing

“Police were shouting ‘get down, get down’!

“He (a suspect) was waving quite a large knife. They detained him. I think it was a Taser that got him down in the end.”

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The moment armed police arrive at the train

Emergency stop

Passengers had pulled the emergency cord, he said, which caused the train to make an unscheduled stop at Huntingdon, where armed police boarded.

Gavin added he saw someone moving through his carriage, and saying: “They’ve got a knife, I’ve been stabbed.”

“They were making their way through the carriage to get away from the suspects. They were extremely bloodied,” he added.

He says by the time the train stopped, “they were basically on the floor”.

“That person ended up collapsing on the floor. They were taken to an ambulance pretty much straight away,” he said.

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One passenger in an emergency mediwrap blanket walks to safety. Pic: PA
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One passenger in an emergency mediwrap blanket walks to safety. Pic: PA

Chief Superintendent Chris Casey of British Transport Police said: “This is a shocking incident and first and foremost my thoughts are with those who have been injured this evening and their families.

“We’re conducting urgent enquiries to establish what has happened, and it could take some time before we are in a position to confirm anything further.

“At this early stage, it would not be appropriate to speculate on the causes of the incident.

“Our response is ongoing at the station and will be for some time.”

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