‘We’ve got to fight for our livelihoods’: Port Talbot’s uncertain future as the cost of going green hits home
“Workers united, will never be defeated!” a man shouts into a loud hailer. He is part of a crowd marching through the streets of Manchester in a May Day parade, organised by some of Britain’s biggest trade unions.
The sun is shining and there’s a festival atmosphere, as his fellow marchers hold aloft placards about workers’ rights and fair pay.
Among the marchers is Jason Wyatt, a steelworker from South Wales. He is here to shine a spotlight on what’s happening in his hometown of Port Talbot, where several thousand of his colleagues are facing redundancy.
There’s applause as Jason takes to the stage.
Jason Wyatt speaks during the May Day parade
“They are trying to destroy the livelihoods of 2,800 people,” he says. “Port Talbot is the last bastion of heavy industry in South Wales. We have to fight.”
There has been a steelworks in Port Talbot, which sits on the south coast of Wales, for 125 years.
These days the large, sprawling site is owned by Tata Steel, an Indian company which employs around half of its 8,000 workforce in Port Talbot.
The local economy is heavily reliant on the manufacturing sector, which provides approximately a fifth of jobs in the area, according to Welsh government figures.
But the British steel industry has struggled to remain competitive in a fierce global market, and that means uncertain futures for communities like Port Talbot.
In 2019, the UK produced seven million tonnes of steel, behind seven EU nations – including Germany’s 40 million tonnes. Meanwhile, China produced 996 million tonnes.
Steelworks also cost huge amounts to run because they use massive amounts of energy.
The Port Talbot plant has, by far, the biggest bill and uses as much electricity, for example, as the whole of the city of Swansea a few miles along the motorway.
The sums do not add up, says Tata Steel. It claims its UK business loses £1m a day.
The other huge issue facing the company, and its Port Talbot plant, is how polluting it is. The steelworks is the single biggest emitter of greenhouse gases in Britain.
And Tata thinks that by moving away from its existing coal-powered blast furnace to a greener way of making steel – using scrap metal as fuel – it could reduce the UK’s entire carbon emissions by around 1.5 per cent.
The UK government has agreed to pay Tata £500m towards the building of a new electric arc furnace.
But to do that, Tata says it needs to shut down the two remaining blast furnaces, resulting in the loss of 2,800 jobs.
The drive to go green is costing jobs in Port Talbot. And that’s a dilemma that companies across the UK – and around the world – are facing.
“Tata are asking people to save the business with a forfeit in their jobs. It’s awful,” says Jason, who has worked at the Port Talbot plant for 25 years.
It is estimated that around 1.3 million workers in carbon-intensive so-called “brown” jobs will need to adapt to cleaner technologies and processes, according to the Resolution Foundation think tank.
But the numbers on the cost of going green are disputed.
The TUC estimates that 800,000 manufacturing and supply chain jobs could be axed without support from the government.
While the Climate Change Committee, an independent body set up by the government in 2008, says anywhere between 8,000 and 75,000 jobs could go in the transition.
The government says the UK is the first major economy to halve its emissions – and is leading the way in the transformation of the energy industry, with over 80,000 green jobs currently supported or in the pipeline since 2020.
“Much of the transferable expertise from industries such as steelworks and oil and gas will be crucial for the transition to net zero,” a government spokesperson said.
“And our Green Jobs Plan will ensure we have the sufficient skills to tackle emerging and future workforce demands across the economy.”
Inside the plant, it’s hot and the smell of sulphur hangs in the air, a by-product of the manufacturing process. Peter Quinn is leading Tata’s move to green steel.
He says the idea that its arc furnace could be up and running in four years is still “approximate” and that consultations with stakeholders, including the workers, would need to be completed first.
The unions and local politicians have called on Tata to keep one blast furnace operational while the new one is built. But Tata says that is not cost-effective.
Quinn says the only other option is abandoning steelmaking in Port Talbot altogether.
Jason thinks Tata should opt for a more gradual transition that would avoid the need to make redundancies.
“We’re not opposing the green steel agenda,” he says. “What we’re opposing is the way in which we’re transitioning.”
This shift is already impacting his family. His son, Tyler, is 19 and had hoped to apply for an apprenticeship at Tata.
“I’m at a point in my life where I need to start securing my future, buy a house and settle somewhere,” says Tyler. “But it’s too risky now to think that there are opportunities [at Tata] for me.”
Jason Wyatt on the beach with his family
As Jason and his family take a windswept walk on the town’s beach with their dogs, their gaze is drawn towards the harbour where the cranes used to unload iron ore from around the world, dominate the view.
But out to sea, hope could be on the horizon. There are plans for a huge wind farm in the Celtic Sea with enough wind turbines to power four million homes.
And Tata hopes it can make the football pitch-sized platforms that the turbines will sit on.
But this potential new chapter in the story of Britain’s journey to a greener economy still seems too far away for the steelworkers.
Ashley Curnow, a divisional manager for Associated British Ports in Wales, hopes the towns along the shore like Port Talbot will benefit from the new development.
“I understand there’s an immense amount of worry at the moment throughout the community, and I think our role in this project is to deliver the project, as soon as we can and bring those job opportunities forward.”
At home, Jason and his family reflect on what the future might hold.
His wife, Stacey, thinks Tata is treating its workers unfairly.
“I think it’s wrong what Tata Steel are doing to their workers. They don’t really care about how it’s going to affect people and their families.”
“It’s a hard time for all of us,” Jason adds. “We’ve got to fight to protect our livelihoods”.
The UK’s benchmark stock index has reached another record high.
The FTSE 100 index of most valuable companies on the London Stock Exchange closed at 8,505.69, breaking the record set last May.
It had already broken its intraday high at 8532.58 on Friday afternoon, meaning it reached a high not seen before during trading hours.
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The weakened pound has boosted many of the 100 companies forming the top-flight index.
Why is this happening?
Most are not based in the UK, so a less valuable pound means their sterling-priced shares are cheaper to buy for people using other currencies, typically US dollars.
This makes the shares better value, prompting more to be bought. This greater demand has brought up the prices and the FTSE 100.
The pound has been hovering below $1.22 for much of Friday. It’s steadily fallen from being worth $1.34 in late September.
Also spurring the new record are market expectations for more interest rate cuts in 2025, something which would make borrowing cheaper and likely kickstart spending.
What is the FTSE 100?
The index is made up of many mining and international oil and gas companies, as well as household name UK banks and supermarkets.
Familiar to a UK audience are lenders such as Barclays, Natwest, HSBC and Lloyds and supermarket chains Tesco, Marks & Spencer and Sainsbury’s.
Other well-known names include Rolls-Royce, Unilever, easyJet, BT Group and Next.
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FTSE stands for Financial Times Stock Exchange.
If a company’s share price drops significantly it can slip outside of the FTSE 100 and into the larger and more UK-based FTSE 250 index.
The inverse works for the FTSE 250 companies, the 101st to 250th most valuable firms on the London Stock Exchange. If their share price rises significantly they could move into the FTSE 100.
A good close for markets
It’s a good end of the week for markets, entirely reversing the rise in borrowing costs that plagued Chancellor Rachel Reeves for the past ten days.
Fears of long-lasting high borrowing costs drove speculation she would have to cut spending to meet self-imposed fiscal rules to balance the budget and bring down debt by 2030.
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They Treasury tries to calm market nerves late last week
Long-term government borrowing had reached a high not seen since 1998 while the benchmark 10-year cost of government borrowing, as measured by 10-year gilt yields, was at levels last seen around the 2008 financial crisis.
The gilt yield is effectively the interest rate investors demand to lend money to the UK government.
Only the pound has yet to recover the losses incurred during the market turbulence. Without that dropped price, however, the FTSE 100 record may not have happened.
Also acting to reduce sterling value is the chance of more interest rates. Currencies tend to weaken when interest rates are cut.
The International Monetary Fund (IMF) has warned against the prospects of a renewed US-led trade war, just days before Donald Trump prepares to begin his second term in the White House.
The world’s lender of last resort used the latest update to its World Economic Outlook (WEO) to lay out a series of consequences for the global outlook in the event Mr Trump carries out his threat to impose tariffs on all imports into the United States.
Canada, Mexico, and China have been singled out for steeper tariffs that could be announced within hours of Monday’s inauguration.
Mr Trump has been clear he plans to pick up where he left off in 2021 by taxing goods coming into the country, making them more expensive, in a bid to protect US industry and jobs.
He has denied reports that a plan for universal tariffs is set to be watered down, with bond markets recently reflecting higher domestic inflation risks this year as a result.
While not calling out Mr Trump explicitly, the key passage in the IMF’s report nevertheless cautioned: “An intensification of protectionist policies… in the form of a new wave of tariffs, could exacerbate trade tensions, lower investment, reduce market efficiency, distort trade flows, and again disrupt supply chains.
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Trump’s threat of tariffs explained
“Growth could suffer in both the near and medium term, but at varying degrees across economies.”
In Europe, the EU has reason to be particularly worried about the prospect of tariffs, as the bulk of its trade with the US is in goods.
The majority of the UK’s exports are in services rather than physical products.
The IMF’s report also suggested that the US would likely suffer the least in the event that a new wave of tariffs was enacted due to underlying strengths in the world’s largest economy.
Read more: What Trump’s tariffs could mean for rest of the world
The WEO contained a small upgrade to the UK growth forecast for 2025.
It saw output growth of 1.6% this year – an increase on the 1.5% figure it predicted in October.
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Economists see public sector investment by the Labour government providing a boost to growth but a more uncertain path for contributions from the private sector given the budget’s £25bn tax raid on businesses.
Business lobby groups have widely warned of a hit to investment, pay and jobs from April as a result, while major employers, such as retailers, have been most explicit on raising prices to recover some of the hit.
Chancellor Rachel Reeves said of the IMF’s update: “The UK is forecast to be the fastest growing major European economy over the next two years and the only G7 economy, apart from the US, to have its growth forecast upgraded for this year.
“I will go further and faster in my mission for growth through intelligent investment and relentless reform, and deliver on our promise to improve living standards in every part of the UK through the Plan for Change.”
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