Sunak’s tax pledge is ‘Truss’s mini Budget on steroids’, says Labour minister

Tata Steel, the owner of Britain’s largest steelworks in south Wales, has urged the winner of next month’s general election to stick to the terms of a £500mn taxpayer support package for the site amid concern that Labour may seek to unravel the deal.

The Conservative government last September struck a deal to hand over £500mn of taxpayer aid to ensure the future of the Port Talbot site as it shifts to lower-carbon production. As part of the agreement, Tata’s Indian owner agreed to invest £750mn to install a less carbon-intensive electric arc furnace which will replace the site’s two blast furnaces, a move that will lead to up to 2,800 job losses.

Labour has criticised the package and on Tuesday told workers it would seek to cut a better deal.

Tata said on Monday it was “apprehensive” about reports that the agreement “may be put in peril due to policy differences expressed by the Conservative and Labour parties”.

“We urge and request the current and incoming government post-elections to adhere to and safeguard the agreed terms.”