“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 colleaguesare facing redundancy.
There’s applause as Jason takes to the stage.
Image: 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.
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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.”
Image: 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 metals tycoon Sanjeev Gupta is this weekend plotting a controversial deal to salvage his remaining UK steel operations and avert their collapse into compulsory liquidation – a move that would put close to 1,500 jobs at risk.
Sky News has learnt that Mr Gupta is in talks about a so-called connected pre-pack administration of Liberty Steel’s Speciality Steel UK (SSUK) arm, which would involve the assets being sold – potentially to parties linked to him – after shedding hundreds of millions of pounds of tax and other liabilities to creditors.
Begbies Traynor, the accountancy firm, is understood to be working on efforts to progress the pre-pack deal.
This weekend, Whitehall sources said that government officials had stepped up planning for the collapse of SSUK if an already-deferred winding-up petition scheduled to be heard next Wednesday is approved.
If that were to happen, SSUK would be likely to enter compulsory liquidation within days, with a special manager appointed by the Official Receiver to run the operations.
Mr Gupta’s UK business operates steel plants at Sheffield and Rotherham in South Yorkshire, with a combined workforce of more than 1,400 people.
SSUK is Britain’s third-largest steel producer.
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Sources close to Mr Gupta could yet secure a further adjournment of the winding-up petition to buy him additional breathing space from creditors.
In May, a hearing was adjourned after lawyers acting for SSUK said talks had been taking place with “a third-party purchaser”.
Their identity has not been publicly disclosed, and it has been unclear in recent weeks if any such discussions were continuing.
A connected pre-pack risks stiff opposition from Liberty Steel’s creditors, which include HM Revenue and Customs.
UBS, the investment bank which rescued Credit Suisse, a major backer of the collapsed finance firm Greensill Capital – which itself had a multibillion dollar exposure to Liberty Steel’s parent, GFG Alliance – is also a creditor of the company.
Grant Thornton, the accountancy firm handling Greensill’s administration, is also watching the legal proceedings with interest.
The Serious Fraud Office launched a probe into GFG – which stands for Gupta Family Group – in 2022.
On Saturday, a Liberty Steel spokesperson said: “Discussions are ongoing to finalise options for SSUK.
“We remain committed to identifying a solution that preserves electric arc furnace steelmaking in the UK-a critical national capability supporting strategic supply chains.
“We continue to work towards an outcome that best serves the interests of creditors, employees, and the broader community.”
Last month, The Guardian reported that Jonathan Reynolds, the business secretary, was monitoring events at Liberty Steel’s SSUK arm, and had not ruled out stepping in to provide support to the company.
Such a move is still thought to be an option, although it is not said to be imminent.
The Department for Business and Trade has been contacted for comment.
It has previously said: “We continue to closely monitor developments around Liberty Steel, including any public hearings, which are a matter for the company.
“It is for Liberty to manage commercial decisions on the future of its companies, and we hope it succeeds with its plans to continue on a sustainable basis.”
Wednesday’s winding-up petition was filed by Harsco Metals Group, a supplier of materials and labour to SSUK, and is said to be supported by other trade creditors.
Mr Reynolds has already orchestrated the rescue of British Steel, the Scunthorpe-based steelmaker, after failing to reach a government aid deal with Jingye Group, the company’s Chinese owner.
Jingye had been preparing to permanently close Scunthorpe’s remaining blast furnaces, prompting Mr Reynolds to step in and seize control of the company in April.
The government has yet to make a decision to formally nationalise British Steel, although that is anticipated in the autumn.
Tata Steel, the owner of Britain’s biggest steelworks at Port Talbot, has agreed a £500m government grant to build an electric arc furnace capable of manufacturing greener steel.
Other parts of Mr Gupta’s empire have been showing signs of financial stress for years.
The Financial Times reported in May that he was preparing to call in administrators to oversee the insolvency of Liberty Commodities.
Separately, HMRC filed a winding-up petition against Liberty Pipes, another subsidiary, earlier this month, The Guardian reported.
Mr Gupta is said to have explored whether he could persuade the government to step in and support SSUK using the legislation enacted to take control of British Steel’s operations.
Whitehall insiders told Sky News in May that Mr Gupta’s overtures had been rebuffed.
He had previously sought government aid during the pandemic but that plea was also rejected by ministers.
SSUK, which also operates from a site in Bolton, Lancashire, makes highly engineered steel products for use in sectors such as aerospace, automotive and oil and gas.
The company said earlier this year that it had invested nearly £200m in the last five years into the UK steel industry, but had faced “significant challenges due to soaring energy costs and an over-reliance on cheap imports, negatively impacting the performance of all UK steel companies”.
The private equity firm set up by Jared Kushner, President Donald Trump’s son-in-law, is to take a stake in OakNorth, the British-based lender which has set its sights on a rapid expansion in the US.
Sky News has learnt that Affinity Partners, which has amassed billions of dollars in assets under management, has signed a deal to acquire an 8% stake in OakNorth.
The deal is expected to be concluded in the coming weeks, industry sources said on Friday.
Mr Kushner established Affinity Partners in 2021 after leaving his role as an adviser to President Trump during his first term in the White House.
He is married to Ivanka, the president’s daughter.
Affinity manages money for a range of investors including the sovereign wealth funds of Qatar and Saudi Arabia.
Insiders said that Affinity Partners was buying the OakNorth stake from an unidentified existing investor in the digital bank.
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The valuation at which the transaction was taking place was unclear, although OakNorth was valued at $2.8bn in its most recent funding round in 2019.
OakNorth, which was founded by Rishi Khosla, is targeting substantial loan growth in the US in the coming years.
Earlier this year, it agreed to buy Community Unity Bank (CUB), which is based in Birmingham, Michigan, in an all-share deal.
The transaction is awaiting regulatory approval.
OakNorth began lending in the US in 2023 and has since made roughly $1.3bn of loans.
The bank is chaired by the former City watchdog chair Lord Turner, and is among a group of digital-only British banks which are expected to explore stock market listings in the next few years.
Monzo, Revolut and Starling Bank are all likely to float by the end of 2028, although London is far from certain to be the destination for all of them.
Similarly, OakNorth’s ambition to grow its US presence means it is likely to be advised by bankers that New York is a more logical listing venue for the business.
Launched in 2015, the bank is among a group of lenders founded after the 2008 financial crisis.
Its UK clients include F1 Arcade and Ultimate Performance, both of which have themselves expanded into the US market.
Its existing backers include the giant Japanese investor SoftBank, GIC, the Singaporean state fund, and Toscafund, the London-based asset management firm.
Since its launch, OakNorth has lent around £12.5bn and boasts an industry-leading loan default ratio.
Last year, it paid out just over £30m to shareholders in its maiden dividend payment.
OakNorth has been growing rapidly, saying this year that it had recorded pre-tax profits of £214.8m in 2024, up from £187.3m the previous year.
It made more than £2.1bn of new loans last year.
On Friday, a spokesperson for OakNorth declined to comment.
The UK’s largest bioethanol plant is set for closure with the loss of 160 jobs after the government confirmed it would not offer a bailout deal to the facility in Lincolnshire.
Owners Vivergo, a subsidiary of Associated British Foods, had warned that the plant would close without government support, and sources at the company have told Sky News the wind-down process is now likely to begin.
An ABF spokesperson, which also owns Primark, said the government’s decision was “deeply regrettable” and it had “chosen not to support a key national asset”.
They added that the government had “thrown away billions in potential growth in the Humber and a sovereign capability in clean fuels that had the chance to lead the world”.
Vivergo have blamed the UK’s trade deal with the United States, which ended a 19% tariff on imported ethanol, for making the plant unviable.
Ethanol tariffs were cut along with those on beef as part of the UK-US deal, which focused on reducing or removing Donald Trump’s import taxes on UK cars and aerospace parts.
The plant, which converts wheat into the fuel typically added to petrol to reduce carbon emissions, was already losing £3m a month before the trade deal, with industrial energy prices, the highest among developed economies, cited as a major factor.
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Vivergo and ABF have warned of the threat to the plant since the spring, but had hoped negotiations with the government would lead to an improved offer by the end of the week. On Friday morning, they were told there would be no bailout.
Government sources said they had employed external consultants to provide advice, and pointed out that the plant had not been profitable since 2011.
A government spokesman said: “Direct funding would not provide value for the UK taxpayer or solve the long-term problems of the bioethanol industry.”
“This government will always take decisions in the national interest. That’s why we negotiated a landmark deal with the US which protected hundreds of thousands of jobs in sectors like auto and aerospace.
“We have worked closely with the companies since June to understand the financial challenges they have faced over the past decade, and have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces.
“We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process.
“We also continue to work up proposals that ensure the resilience of our CO2 supply in the long-term in consultation with the sector.”
Unite general secretary Sharon Graham said the government’s decision not to provide support to the UK’s bioethanol industry was “short-sighted” and “totally disregards the benefits the domestic bioethanol sector will bring to jobs and energy security”.
“Once again, the government’s total lack of a plan to support oil and gas workers as the industry transitions is glaring,” Ms Graham added.
GMB Union’s Charlotte Brumpton-Childs said the closure of the Hull and Redcar bioethanol plants would result in “working people losing their livelihoods”, adding that this was the impact of tariffs and trade deals.
“They’re not numbers in a spreadsheet. These are lives put on hold and communities potentially devastated,” she said.