Image Source: TATA Steel via Youtube
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Future of Port Talbot Steelworks
Is this devolved to Wales?

Devolved
The necessary powers are not reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006.

Shared Powers
Economic development is devolved, but some key policy areas around international trade, energy and the steel industry are not devolved.

Not Devolved
The powers over this are reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006 (Specific Section/Number/Clause).
After years of uncertainty, in January 2024, the owners of Port Talbot steelworks – Indian conglomerate TATA – announced that traditional blast furnace steel production would end at the site.
In September 2024, the final blast furnace was wound down, ending primary steel production in Wales.
In its place, TATA agreed to invest £1.25 billion in an electric arc furnace at the site (pictured above). This investment was backed by a £500 million grant from the UK Government. The electric arc furnace will produce steel by melting scrap metal.
Work started on site in summer 2025, and it’s expected it will be operational during 2028. There have been delays in setting up a connection to National Grid, as well as a major fire at the site in June 2026.
In July 2026, the UK Parliament passed the Steel Industry (Nationalisation) Act. This gave the UK Government the power to nationalise the remaining assets of British Steel (not TATA) and will enable the UK Government to intervene in the steel industry in future if needed.
The Senedd gave its consent (where it involved devolved policy areas) on 14th July 2026.
TATA has long claimed to have been losing at least £1 million a day from Port Talbot’s blast furnace operations.
High energy costs, Brexit (which meant tariffs/import taxes being applied to UK-produced steel exported to the EU), US tariffs introduced by Donald Trump, dumping of surplus Chinese steel on global markets and environmental targets have all been given as reasons behind the long-term uncertainty at the site.
Electric arc furnaces produce steel in a “cleaner” way and will help meet air pollution and carbon emission targets.
It’s claimed that the electric arc furnace project will safeguard around 5,000 jobs, but at least 2,000 jobs have been lost as a result of the blast furnace closure.
Welsh indices of production and construction, basic metals and metal products (100 = level at 2023)
Jobseekers Allowance, claimant count, Neath Port Talbot (since September 2024/closure of blast furnaces)
Costs & Economic Impact
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Who has raised this at the Senedd?
What are the party positions on this?
- Supports Nationalisation
- Opposed
- Neutral/No Opinion
Plaid Cymru MSs supported the Steel Nationalisation Bill, but have expressed disappointment that nationalisation wasn’t considered for Port Talbot in the same way as it was for British Steel.
- Supports
- Opposed
- Mixed Views
Reform supported the Steel Nationalisation Bill and, in principle, back the electric arc furnace.
However, Reform UK has long placed the blame for job losses at Port Talbot on environmental rules tied to “net zero”. They have also expressed support for restarting blast furnace production.
- Supports Nationalisation
- Opposed
- Neutral/No Opinion
Labour have backed previous efforts to protect jobs at the Port Talbot site and have also supported the Senedd giving its consent to the Steel Nationalisation Bill.
- Supports
- Opposed
- Mixed Views
Whilst wanting to support the steel industry, the Conservatives have expressed scepticism about government involvement and the impact of environmental targets.
The Conservatives opposed the UK Parliament’s Steel Nationalisation Act.
- Supports
- Opposed
- Neutral/No Opinion
Green MSs haven’t said anything on this yet, but voted to support the Steel Nationalisation Bill.
- Supports
- Opposed
- Neutral/No Opinion
Jane Dodds hasn’t said anything on this specifically, but voted to support the Steel Nationalisation Bill.
What have ministers said?
What's being done about this?
The Welsh Government backs efforts to maintain Port Talbot steelworks. On September 15th 2026, the First Minister told the Senedd that he expects Wales to receive a proportional share of any future UK Government investment in the steel industry (said to be worth a total of £2.5 billion).
On environmental rules, the First Minister backs what has been called a “just transition” to low-carbon steelmaking. The Welsh Government is willing to work with the UK Government where needed – particularly on issues relating to the grid connection.
This is an ongoing issue.
As noted, the new electric arc furnace is expected to be up and running in 2028. This had been pushed back from 2027 due to delays in securing a connection to National Grid.
What have the Senedd's Committees said?
Nothing has been discussed yet.
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Relevant Votes
| Date | Motion Number | Subject | Tabled As | Binding Vote? | Votes For | Abstentions | Votes Against | Absent/No Vote | Outcome |
|---|---|---|---|---|---|---|---|---|---|
| 14/07/26 | NDM9286 | Steel Nationalisation Bill (UK) | | Yes | 86 | 0 | 7 | 1 | AGREED |
Further Reading
- Senedd Research Service (30th September 2025). “One year on: how has the blast furnace closing affected Port Talbot?“
- BBC Wales (19th January 2024). “TATA Steel confirmes 2,800 job cuts across the UK“
- BBC Wales (30th September 2024). “Traditional steelmaking ends in Wales”
- TATA Steel (18th February 2025). “Plans approved for electric arc furnance“




