Laura Sharman 07 April 2016

Closure of Tata Steel could cost the Government £4.6bn warns think tank

The jobs lost if Tata Steel was to close would cost the Government £4.6bn over the next ten years, according to new analysis by a think tank.

The IPPR said the loss of 40,000 jobs would cost the Government £2.2m a day through reduced revenue from income tax and VAT and increased benefit payments.

The research into the effect the closure would have on the government’s finances and the economy also shows household spending would fall by £3bn over 10 years.

Alfie Stirling, IPPR research fellow, said: ‘Our new analysis shows that there is significant fiscal and economic cost to inaction, which the government must take account of when considering its options for Tata Steel.

‘It is of the upmost importance that the government recognise that the UK economy is more resilient when we retain a more diverse industrial base.’

The Government hopes to secure a buyer for Tata UK’s operations, which will be formally be put up for sale on 11 April.

Business secretary Sajid Javid said: ‘We’re listening, we’ve worked on this for a while, and we want to work with any potential buyer to see how we can help. The government will do everything it can to find a viable, long-term solution for Port Talbot and British steel.’

Photo: Nicholas Jackson/Shutterstock.com

SIGN UP
For your free daily news bulletin
Highways jobs

Director of People

Lancashire County Council
£108,697 - £117,998
As a leader at Lancashire County Council, you’ll join an authority with real scale, courageous ambition and deep pride in place. County hall
Recuriter: Lancashire County Council

Director of Strategy and Transformation

Lancashire County Council
£108,697 - £117,998
As a leader at Lancashire County Council, you’ll join an authority with real scale, courageous ambition and deep pride in place. Preston, Lancashire
Recuriter: Lancashire County Council

Care and Support Assistant -Longlands

West Northamptonshire Council
13.52ph
About the role We are looking for a dedicated Care and Support Worker to join our team at Longlands Care Home in Daventry. In this rewarding role, you will provide compassionate, person-centred care to older people and those living with dementia, includin Daventry
Recuriter: West Northamptonshire Council

Highway Design and Construction Manager

Bolton Council
Grade N, scp50 £62,443 to scp53 £65,663 per annum, plus essential car user allowance
We embrace AI to enhance our operations and to innovate our services. Bolton, Greater Manchester
Recuriter: Bolton Council

Social Worker - Huddersfield Royal Infirmary

Kirklees Metropolitan Council
£38,220 - £40,777
Looking to appoint as a Level 2 or Level 3 Social Worker. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner