'Deep-rooted problems' may scupper Redcar steel jobs hope

Jessie Joe Jacobs said she "desperately" wants to steel jobs brought back to Teesside

"Deep-rooted problems" in the steel industry need to be tackled before the buy-out of the former SSI site on Teesside can be considered a success, a mayoral candidate has warned.

A deal for the South Tees Development Corporation (STDC) to take control of 840 acres in Redcar was announced on Thursday.

Tees Valley Mayor Ben Houchen said it "marked the beginning of a new era".

However, Jessie Joe Jacobs said the factors behind SSI's collapse remain.

More than 3,000 jobs were lost when the firm went under in 2015.

'Step in right direction'

While welcoming the "well-overdue" land deal, the Labour candidate for May's election said more work must be done, according to the Local Democracy Reporting Service.

"I hope this is a step in the right direction to bring steel jobs back to Tees Valley, but bringing the land back under local control will not on its own bring steel jobs back to Teesside," she said.

"Proposals for an electric arc furnace at the Lackenby site have been around for some time, as have a range of other development announcements, but these have yet to deliver any jobs.

"The factors that drove SSI to the wall in 2015 - high energy costs and business rates, among others - are still there."

Tees Valley Mayor Ben Houchen has vowed to bring thousands of jobs to the site

Cheap Chinese steel was also blamed for contributing to the demise of its Teesside operation.

The STDC now owns the majority of the site, following a deal with Tata in January 2019 to transfer more than a thousand acres.

No information about financial arrangements has been released for reasons of "commercial sensitivity".

Announcing the agreement, Mr Houchen said it would lead to a "brighter and successful future for the area".

"Now we've put the building blocks in place we can get on and deliver the jobs and investment this site needs," he said.