£500m for steelworks-but 3,000 jobs at risk

THE Government will pump up to £500 million into Britain's biggest steelworks as part of plans to produce "greener" steel - but as many as 3,000 workers are set to lose their jobs.

Tata, the Indian conglomerate owner of the Port Talbot steelworks in South Wales, will use the funding to help switch the plant's two coal-fired blast furnaces to electric arc versions which can run on zero-carbon electricity.

The firm, which employs around 8,000 people across the UK, will also invest about £750 million in the project.

But the company said yesterday the plans will lead to consultations over a "deep potential restructuring"

In a separate statement, the department for business and trade said the deal will only safeguard around 5,000 jobs out of Tata's total workforce.

Union leaders have expressed their anger at being shut out of talks between Tata and the Government and described the deal as a "disgrace"