Sleeping ministers finally offer to buy stake in the steel industry – but deny it is nationalisation

Ministers have finally said they could be willing to take a stake of up to 25 per cent in Tata Steel’s UK operations.

After weeks of chaos and indecision, Sajid Javid said the Government could provide a rescue package worth “hundreds of millions of pounds” to the steel mills – but denied this would amount to part-nationalisation.

Any Government support could help save thousands of jobs at Tata’s steel plants, which include Port Talbot, the UK’s largest. Tata employs more than 10,000 people in the UK with around 40,000 manufacturing jobs dependent on the sector more broadly.

Yesterday Javid, the Business Secretary, said his department could could take a stake in Tata Steel’s UK operations, on commercial terms. Tata, the Indian parent company, is trying to sell its business here after losses reached £1m a day, although these are thought to have narrowed subsequently.

The announcement cheered two potential buyers who are emerging as frontrunners after more than 190 expressions of interest in the business from around the world.

Stuart Wilkie, head of the Port Talbot plant, is bidding to lead a management buyout, while Sanjeev Gupta, who runs the Liberty House steel firm, has gone public on his hope to acquire part of the business. Wilkie spoke to Carwyn Jones, Welsh First Minister, about his bid earlier this week.

Ministers in the Westminster government have said they will work alongside a potential buyer to “support a viable sale”.

“If we were to take an extra stake it would be a minority one with the aim of supporting the purchaser in delivering a long-term future for the business, we are certainly not seeking to be controlling the company”, a spokeswoman for David Cameron told the BBC.

When asked if this meant part-nationalisation, she replied: “I am not sure we would accept the concept of part-nationalisation. We will be investing on a commercial basis. We would not see this as nationalisation. We would not be seeking to acquire a control in the business. We don’t think that nationalisation is the right answer.”