The government has announced £80m of support for workers who have lost their jobs at SSI’s Redcar steel plant.
The Department for Business, Innovation and Skills also said it turned down an unviable request from SSI for funding to keep the factory open.
Sajid Javid, the business secretary, attended a meeting of a local taskforce in Redcar on Friday, where he announced the support package, which includes funding for affected workers to train at further education colleges. There will also be money to help workers who want to start a business and for existing small businesses.
Javid said: “This is an extremely difficult time for the workforce at SSI and the local community. The package we are announcing today will provide important support to workers and the local economy. Across government we will continue to focus on providing assistance where we can.”
SSI mothballed the plant on Monday, blaming a slump in the price of steel for the decision, which will put 1,700 permanent workers out of jobs. Unions have called on the government to intervene to support Britain’s steel industry. Campaigners in Redcar fear the closure will put thousands more jobs at risk in the local economy.
Javid’s department said SSI made a “last-minute and unrealistic” request for an “open-ended” government funding commitment to keep Europe’s second-biggest blast furnace burning on the banks of the river Tees.
“On the basis of the limited business case it was given, the government has no confidence that this is a realistic proposal for taxpayers to support,” it said. “In addition, it would be illegal and in breach of state aid rules. The company has never made a profit and the board’s proposal would do nothing to address the huge debts outstanding to local suppliers and other parties.”
A spokesman for the Community union said SSI was to blame for the closure of Redcar after nearly 100 years in operation, but added that the government needed to do more.
“We have been saying for weeks that SSI is not fit for purpose. It is clear that SSI has yet again put forward a plan to government that lacks credibility. We believe there are alternative plans and parties who could intervene to protect the industrial assets,” he said.
“Government’s responsibility has not ended with the announcement of this support package. It should intervene to remove SSI and support an alternative approach that gives steel-making an improved chance of a future.”
