Steel rescue package could be a ‘missed opportunity’, Labour MP Stephen Kinnock warns
A government aid package aimed at securing the long-term future of steelmaking in South Wales could be a “missed opportunity”, a senior Labour MP has told Sky News.
Stephen Kinnock, whose Aberavon constituency includes Port Talbot, home of the steelworks owned by Tata, also said the deal could be counterproductive.
While it does include the building of electric arc furnaces (EAFs) – which are greener than traditional blast furnaces – it does not focus enough on transitioning to a decarbonised economy, Mr Kinnock said.
“Nobody’s really talking about hydrogen (to produce steel), carbon capture and storage,” he said.
Dr Jonathan Aylen, a steel industry expert at the University of Manchester, has similar concerns, describing the potential agreement as a “bit of a stop-gap solution”.
Getting rid of blast furnaces, which use coke derived from coal, would be an important step, however.
While they are a “great way to make steel” they are also a “great producer of carbon”, Dr Aylen told Sky News.
“For every tonne of steel you make you get two tonnes of carbon dioxide going into the atmosphere.”
But he, too, mentioned the use of hydrogen and carbon capture and said ministers need to take a “long, careful, hard look at what needs to be done to decarbonise steel and stop becoming, so to speak, being taken for a sucker by every company that wants a handout”.
For the unions, there are concerns about job cuts, because EAFs use less labour-intensive processes to produce steel than blast furnaces.
The government is “choosing to follow a jobs cuts agenda”, the Unite union has claimed.
Community, the steelworkers’ union, said unions had “not agreed any decarbonisation strategy for Port Talbot”.
A molten steel ladle
There are questions, too, about whether it is worth spending taxpayers’ money to support the steel industry.
Russ Mould, investment director at AJ Bell, said it accounts for a “fraction of a percent” of the UK economy.
UK steel has been through “multiple insolvencies” and this latest rescue plan could be seen as the government “throwing good money after bad”, Mr Mould added.
But Mr Kinnock said that failing properly to support the British steel industry could mean becoming reliant on metal from China which is produced in an “incredibly dirty, heavily polluting” manner.
The potential agreement, uncovered by Sky News, could see ministers handing over a £500m aid package, with Whitehall officials and Tata Steel getting close to agreeing a deal that would commit more than £1bn to the future of the firm’s South Wales plant.
Mr Kinnock said he had “real concern” that the “focus seems to be very much on electric arc furnaces”.
He added: “Nobody’s really talking about hydrogen, direct reduced iron, carbon capture and storage, which are all vitally important routes to decarbonising the steel-making processes.
“If we don’t have all those different routes we won’t be able to make all the grades and quantities of steel that we need to retain our customer base.
“And if we don’t do that there will be more job losses than are necessary, and it will be a missed opportunity by the government and by Tata Steel.”
Tata Steel, Port Talbot
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Mr Kinnock is calling for a “full spectrum approach” as the UK pursues rapid decarbonisation, and said it is “vital” the unions and the workforce are fully consulted about the agreement.
Asked if the steel industry has a future, Mr Kinnock said: “Imagine the cost of doing nothing. There are 4,000 very well paid, high-skilled jobs in the Port Talbot steelworks.
“If we’re going to transition to a decarbonised economy are we going to do that by importing steel from China?
“We’re also living in a dangerous and turbulent world. Do we really think it’s a good idea to be relying on other governments – sometimes hostile to the UK – to supply our steel?”
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Sharon Graham, the general secretary of Unite, said: “This government could make us the green steel capital of Europe – instead they are choosing to follow a jobs cuts agenda. Unite will leave no stone unturned in the fight for jobs.”
Community, the steelworkers’ union, said: “We remain in discussions with the company and the unions have not agreed any decarbonisation strategy for Port Talbot.
“We continue to support a solution that will maintain blast furnace production and safeguard the future for all the UK plants.
“We are ready to use all means at our disposal to protect jobs and our vital strategic industry.”
Lisa Nandy, the culture secretary, is to sign off the appointment of a chair of English football’s new referee within days.
Sky News has learnt that David Kogan, a media industry veteran who has helped negotiate a string of television rights deals across the sport in recent decades, is to be formally approved as chair of the Independent Football Regulator (IFR).
Whitehall sources said an announcement could be made by the Department for Culture, Media and Sport (DCMS) as soon as this week, although they added that the timetable could slip by a few days.
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Once approved, Mr Kogan is expected to face a committee of MPs for a confirmation hearing early next month, the sources added.
Sky News revealed last weekend that Mr Kogan had emerged as the frontrunner for the post after an earlier shortlist of three candidates was passed over.
The new regulator has the firm backing of Sir Keir Starmer, and is a key element of legislation currently passing through Parliament.
Mr Kogan, whose boardroom roles have included a directorship at state-owned Channel 4, was initially approached during a previous recruitment process launched under the last Conservative administration.
He has some links to Labour, having in the past donated money to a number of individual parliamentary candidates, chairing LabourList, the independent news site, and writing two books about the party.
Mr Kogan has had extensive experience at the top of English football, having advised clients including the Premier League, English Football League, Scottish Premier League and UEFA on television rights contracts.
Last year, he acted as the lead negotiator for the Women’s Super League and Championship on their latest five-year broadcasting deals with Sky – the immediate parent company of Sky News – and the BBC.
His current roles include advising the chief executives of CNN, the American broadcast news network, and The New York Times Company on talks with digital platforms about the growing influence of artificial intelligence on their industries.
In recent months, Sky News has disclosed the identities of the shortlisted candidates for the role, with former Aston Villa FC and Liverpool FC chief executive Christian Purslow one of three candidates who made it to a supposedly final group of contenders.
Secretary of State for Culture, Media and Sport Lisa Nandy. File pic: Reuters
The others were Sanjay Bhandari, who chairs the anti-racism football charity Kick It Out, and Professor Sir Ian Kennedy, who chaired the new parliamentary watchdog established after the MPs expenses scandal.
The apparent hiatus in the appointment of the IFR’s £130,000-a-year chair threatened to reignite speculation that Sir Keir was seeking to diminish its powers amid a broader clampdown on Britain’s economic watchdogs.
Both 10 Downing Street and the Department for Culture, Media and Sport (DCMS) have sought to dismiss those suggestions, with insiders insisting that the IFR will be established largely as originally envisaged.
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The creation of the IFR, which will be based in Manchester, is among the principal elements of legislation now progressing through parliament, with Royal Assent expected before the summer recess.
The Football Governance Bill has completed its journey through the House of Lords and will be introduced in the Commons shortly, according to the DCMS.
The regulator was conceived by the Tories in the wake of the furore over the failed European Super League project, but has triggered deep unrest in parts of English football.
Its creation forms part of a process that represents the most fundamental shake-up in the oversight of English football in the game’s history.
The establishment of the body comes with the top tier of the professional game gripped by civil war, with Abu Dhabi-owned Manchester City at the centre of a number of legal cases with the Premier League over its financial dealings.
The Premier League is also keen to agree a long-delayed financial redistribution deal with the EFL before the regulator is formally launched, although there has been little progress towards that in the last year.
“We do not comment on speculation,” a DCMS spokesperson said when asked about the impending announcement of Mr Kogan as the IFR chair.
“No appointment has been made and the recruitment process for [IFR] chair is ongoing.”
A UK-based car distributor has seen its shares hit a four-year low after reporting a fall in sales and warning of hits ahead from Donald Trump’s trade war.
Inchcape, which exports cars for manufacturers across more than 40 countries globally, saw its stock lose up to 16.9% in early trading on Wednesday after its first quarter trading update.
It told investors that while it was not currently experiencing damage from the Trump administration’s 25% tariffs on all US car imports, revenue fell by 5% over the three months to March to £2.1bn.
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Inchcape reported a resilient performance from its Americas division but struggles in its Asia-Pacific and European markets.
The period was dominated by trade war fears generally as the US president’s second term got under way and was marked by a surge in demand for goods in the US in a bid to beat any tariffs he threatened to impose.
Inchcape blamed the revenue decline on a strong comparable period in 2024 and “mixed market momentum”, led by that dash for shipments to the US to beat the imposition of any additional US duties.
They were universally imposed earlier this month, but Mr Trump has since signalled that some exemptions may soon be applied.
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There are fears that a prolonged period of trade disruption could result in job losses within the UK car industry and its supply chain.
Inchcape reaffirmed its 2025 guidance but said that excluded any impacts from tariffs.
Its actions to mitigate the effects included a focus on costs and inventory.
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Chief executive Duncan Tait said: “Demand is not currently being impacted by the tariff situation, although we do expect to see potential impacts on supply from our OEMs (original equipment manufacturers), the competitive environment, and market demand.
“We are taking proactive steps to support our key stakeholders, including taking a conservative approach to managing inventory levels, ensuring we remain disciplined on costs, focusing on cash generation and maintaining our strong balance sheet.”
Shares had recovered some poise by mid-morning, trading down by just over 7% following the initial slump.
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