Energy cost cuts to 'boost' thousands of new jobs

An artist's impression of how the new electric arc furnace will sit within the existing Tata Steel site in Port Talbot

The new electric arc furnace at Port Talbot will benefit from plans to cut electricity costs for the industry by 25%, the UK government says.

Business secretary Jonathan Reynolds told BBC Wales the government's new industrial strategy would include "significant support" with energy prices when Tata's furnace is expected to become operational in early 2028.

He said tens of thousands of new jobs, billions of pounds of investment and increased economic growth "will be supported over the next decade" due to the government's plans.

In Wales, the semiconductor, advanced manufacturing and defence sectors will also be targeted.

From 2027, electricity costs will be cut by up to £40 per megawatt hour for over 7,000 electricity-intensive businesses.

Mr Reynolds said: "If you think about Welsh expertise in aerospace and automotive companies like Airbus and Toyota, you can expect they will benefit directly from this.

"It will make existing Welsh industry a lot more competitive and attract new investment."

The most energy-intensive industries, such as steel, chemicals and glass, will be supported by a scheme called the British Industry Supercharger, which will see the discount they receive on energy prices increase from 60% to 90% from 2026.

That reduction in electricity bills will help those industries remain competitive, protect jobs and invest in the future, the UK government said.

First Minister Eluned Morgan and Prime Minister Sir Kier Starmer during a visit to Airbus aerospace company in Broughton last November

The industrial strategy is a 10-year plan to "make it quicker, easier and cheaper" to do business in the UK.

As part of it, companies such as Airbus in Broughton, Flintshire, are expected to claim a share of £4bn for the advanced manufacturing sector over the next five years.

The UK government will establish a centre for doctoral training in semiconductors that will be led by Swansea University and building on the "world-leading" cluster based in south Wales.

With the top five Ministry of Defence suppliers having a footprint in Wales, that sector will also be boosted by a defence growth deal cluster.

Cardiff Capital Region will have a champion appointed at the British Business Bank to "connect investors with businesses".

Some £30m will be given to a Local Innovation Partnerships Fund in Wales to work with the Welsh government and Innovate UK.

Wales has huge potential - Stevens

The UK government announced on Saturday it was investing £275m in technical training and apprenticeships in England as the heart the industrial strategy.

However Wales will receive consequential funding as part of that because the responsibility for skills is devolved to the Welsh government.

Mr Reynolds said it would be up to First Minister Eluned Morgan and her cabinet as to whether they want to "mirror" that funding.

Secretary of State for Wales Jo Stevens said the industrial strategy would "create wealth" across the country.

She added: "Wales has huge potential and our strategy will harness the strengths of our businesses and workforce to drive growth and create jobs.

"The strategy will support key sectors like aerospace and compound semiconductors while developing industries of the future like floating offshore wind where Wales is well-placed to be a world leader.

"[It] will make Wales one of the best places to invest and do business."