Fresh concerns over the future of Tata Steel in Wales

The Welsh Liberal Democrats have called on the UK Government to take urgent action ahead of the upcoming Budget to protect jobs and secure the long-term future of steelmaking in Wales, as fears grow for workers at Tata Steel’s Llanwern plant in Newport and other sites across Wales.

David Chadwick, Welsh Liberal Democrat MP, said: "The men and women...have done everything asked of them to modernise and adapt, yet Labour (and the previous Conservative Government) have failed to act on energy and trade, forcing Welsh steel to fight with one hand tied behind its back."

The party has warned that delays in government support and mounting international pressures are putting thousands of jobs at risk—not only at Llanwern, but also at Port Talbot, Celsa in Cardiff, Shotton in Deeside, and Trostre in Llanelli.

Steel producers in Wales currently pay around 40 per cent more for electricity than their counterparts in France and Germany.

While the UK Government has pledged to increase network charging compensation from 60 to 90 per cent, this support will not materialise until 2027.

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This delay is expected to cost UK steelmakers an estimated £14.5 million next year alone.

Mr Chadwick said: "This Budget is Labour’s chance to prove it will back Welsh jobs with real action, not warm words.

"Our message is simple: cut costs now, secure trade with Europe, and invest in a green Welsh-steel future."

The Welsh Liberal Democrats have proposed a four-point plan to secure the industry’s future.

Their plan calls for immediate action to reduce energy costs, the rebuilding of trade partnerships with Europe, prioritising UK steel in public infrastructure projects, and long-term reform of the UK’s industrial energy system.

The party is also urging the UK Government to strike a steel trade deal with the EU and US to protect tariff-free exports and existing quota allowances.

Without such an agreement, industry figures warn Welsh steel exports could decline by around 20 per cent.

The Welsh Liberal Democrats have renewed calls for a new customs-union-style arrangement with the EU to keep trade flowing and protect jobs.

Mr Chadwick said: "We also cannot save Welsh steel while cutting ourselves off from our biggest market.

"The Liberal Democrats are clear: we need a closer relationship with the EU, including a new customs arrangement, to keep trade flowing and protect jobs.

"Signing a steel deal with the EU must happen now."

The party’s plan also calls for major infrastructure, energy, and defence projects to use British-made steel, supporting the domestic economy and the transition to green industry.

They propose decoupling clean electricity prices from volatile gas markets and investing in offshore wind and grid upgrades, particularly in South Wales.

The call for urgent action comes just weeks after Tata Steel announced that workers at its Welsh sites—including Llanwern—could face "catastrophic" pay cuts in the run-up to Christmas due to extended shutdowns.

Production at Port Talbot is not expected to resume until 2027.

Even then, the transition to electric arc furnace technology, combined with the threat of new tariffs from the US and potentially the EU, has cast doubt on the long-term viability of the site.