he Government will pump as much as £500 million into Britain’s greatest steelworks as a part of plans to provide “greener” metal – however as many as 3,000 employees are set to lose their jobs.

Tata, the Indian conglomerate proprietor of the Port Talbot steelworks in South Wales, will use the funding to assist swap the plant’s two coal-fired blast furnaces to electrical arc variations which may run on zero-carbon electrical energy.

The agency, which employs round 8,000 folks throughout the UK, can even make investments about £750 million within the mission.

But the corporate stated on Friday the plans will result in consultations over a “deep potential restructuring”.

In a separate assertion, the division for enterprise and commerce stated the deal will solely safeguard round 5,000 jobs out of Tata’s whole workforce.

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

Prime Minister Rishi Sunak stated: “There were fears that around 8,000 jobs could be lost if steelmaking was lost at that plant. That clearly was a risk because those two blast furnaces there are reaching the end of their life.

“I’m pleased that the Government has managed to reach an agreement with Tata to support them in that transition, but they will also be making a very substantial capital investment into the plant to secure thousands of jobs.

“Obviously, there will still be some people affected and I know this will be an anxious time for them.”

The £1.25 billion furnaces are anticipated to be up and operating inside three years of getting regulatory and planning approvals.

Tata stated final 12 months its UK operations had been below risk except it secured Government funding to assist it transfer to much less carbon-intensive electrical arc furnaces.

The deal additionally comes two months after guardian agency Tata Group confirmed plans to construct a £4 billion battery manufacturing unit within the UK after additionally getting subsidies from the UK Government.

On Friday, Tata stated the recent plans lay out a future for sustainable steel-making within the space.

Tata Steel’s chief govt and managing director, TV Narendran, stated: “We will undertake a meaningful consultation with the unions on the proposed transition pathway in the context of future risk and opportunities for Tata Steel UK.

“With the support of the UK Government and dedicated efforts of the employees of Tata Steel UK along with all stakeholders, we will work to transform Tata Steel UK into a green, modern, future-ready business.”

The Government stated changing the prevailing coal-powered blast furnaces on the Port Talbot web site will “reduce the UK’s entire carbon emissions by around 1.5%”.

Speaking to Sky News, Business Secretary Kemi Badenoch stated the settlement was “a great deal. Not just for Port Talbot, but for the UK”.

Ms Badenoch stated: “What I would say to people who are concerned about job losses is that we do understand and we have a transition plan in place that’s funded up to about £100 million to make sure that people have skills to retrain and move on to other things if they don’t want to stay in the steel industry.”

But union bosses and rival politicians closely criticised the announcement.

Unite common secretary Sharon Graham stated: “These plans are disgraceful, short-sighted and lack ambition.

“Unite will be fighting tooth and nail not only to save these jobs but to create more jobs in steel.”

Gary Smith, GMB common secretary, stated: “The jobs of thousands of steelworkers are now at risk. The cost to local people and the wider Port Talbot community will be immense.

“Once again, we have the spectacle of leaders talking up the fantasy land of a ‘just transition’ while the bitter reality for workers is them getting the sack.”

Labour claimed the plans would each waste cash and harm employees, with shadow enterprise secretary Jonathan Reynolds MP saying: “Only the Tories could spend £500 million of taxpayers’ money to make thousands of British workers redundant.”

Labour’s Stephen Kinnock, who represents the Aberavon constituency, stated a single job misplaced could be “one job loss too many”.

“If they had had a plan that was not just putting all the eggs into the electric arc furnace basket, we would have been able to have much more security about the future and sustaining those jobs.

“If those numbers are right, it would be utterly devastating for the community that I represent.”

Plaid Cymru members for South Wales West, Luke Fletcher and Sioned Williams, stated: “The potential job losses at Tata’s Port Talbot plant will have a devastating impact not only on the people of Port Talbot and its neighbouring communities but on the local and national economy.

“Our solidarity is with the workers at this time and we stand ready to support those who need it.”

Downing Street acknowledged it had been an “anxious time” for workers and their households however insisted the modifications had been crucial.

“We recognise this will have been an anxious time for employees and their families while this work to find the right way forward has taken place,” the Prime Minister’s official spokesman stated.

“Simply maintaining blast furnace production, ie the status quo, was not an option with the steel industry needing a sustainable future using more modern technology and practices.”