Tata Steel’s turnaround fund opens with grants of up to £1.5m for Welsh businesses

Businesses across South Wales are being invited to apply for grants of up to £1.5 million under a new funding scheme designed to boost the economy and create jobs following Tata Steel UK’s transition to green steelmaking.

The Economic Growth and Investment Fund, managed by Neath Port Talbot Council on behalf of the UK Government and Tata Steel, is now open to companies operating in Neath Port Talbot, Swansea and Bridgend. The scheme provides grants from £300,001 to £1.5 million to support expansion, innovation and long-term investment.

Funded in excess of £11.7 million, the scheme is part of a wider program aimed at reshaping the region’s economy as Port Talbot undergoes its most significant industrial change in decades.

This fund is clearly targeted at sectors that are expected to play an important role in the future economy of the region. These include advanced manufacturing, engineering, renewable energy, digital technology and industries relevant to the emerging green economy.

Eligible businesses can apply for funding to finance capital investment projects such as new equipment, facility development, technology adoption or diversification efforts. The aim is to help companies increase productivity, open up new revenue streams and create high-value jobs.

Applicants will need to demonstrate clear economic impact, including measurable job creation, private sector investment and innovation in their industries. Mutual funding will also be mandatory, ensuring that businesses have a financial stake in the projects they propose.

The launch comes as South Wales continues to adapt to structural changes brought about by Tata Steel’s decarbonisation strategy, including switching to electric arc furnace technology and reducing reliance on conventional furnaces.

Steve Hunt said this change represents an important moment in the local economy, and this fund provides an important opportunity to support businesses that are ready to scale and adapt.

He stressed the importance of strengthening local supply chains and building capacity, saying the council aims to support ambitious firms that can bring long-term economic benefits to the entire region.

The plan is part of a wider initiative led by the Port Talbot Tata Steel Transition Board, which has already allocated £122 million to support workers, businesses and regeneration efforts.

Jo Stevens described the fund as a clear example of collaboration between government and industry to support communities through industrial change.

He said the investment will help attract new businesses, stimulate growth and create quality jobs, and reinforce the government’s commitment to safeguarding the future of steelmaking while supporting economic diversification.

Rajesh Nair confirmed that Tata Steel UK is contributing £5 million to the fund, underlining its intention to remain a key player in the region’s long-term development.

He said the funding will help attract new businesses, encourage innovation and support skills development as the area transitions to sustainable industries.

The company’s participation reflects a comprehensive strategy to reduce the economic impact of decarbonisation while creating new opportunities for clean industry and advanced manufacturing.

The fund will operate through a competitive application process, with proposals evaluated on economic impact, value for money, delivery and innovation.

Priority is expected to be given to projects that are in line with regional growth strategies and demonstrate the potential to generate sustainable economic value.

For South Wales businesses, the program represents one of the most important funding opportunities currently available, providing both financial support and a platform to participate in the region’s industrial transformation.

As the UK accelerates its transition to a low carbon economy, initiatives such as these are likely to play a key role in ensuring that traditional industrial estates are not only protected, but repositioned for future growth.