MINISTERS announced £13.5 million funding to support supply chain businesses and workers affected by job losses at Tata Steel today.

The Indian conglomerate closed one of its two blast furnaces in Port Talbot last month and plans to shut the second in September, as it moves to greener production and cutting thousands of jobs.

Welsh Secretary Jo Stevens, chairwoman of the Tata Steel/Port Talbot Transition Board, said the funding will support local businesses that are heavily reliant on Tata Steel as their main customer.

Money will also be available to workers affected by the transition, which ministers said would help them find new jobs, access training and gain skills and qualifications in areas where there are vacancies.

More than 50 businesses have also signed a pledge to support any workers forced to leave their jobs in the steelworks.

Unions have campaigned against Tata’s plans, which will lead to thousands of job losses.

Negotiations between the government and Tata Steel over the future of the Port Talbot works will continue separately.

Ms Stevens said: “We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens.

“Steel-making is the lifeblood of communities in Wales, but so too is the support of local businesses.

“What they are offering will make a real difference to suppliers and staff.”

Community union’s national officer Alun Davies said: “While we welcome this announcement, it is important to stress that our wider position on Tata’s bad deal for steel has not changed.”

GMB national officer Charlotte Brumpton-Childs said: “We are keen to hear further about the government’s commitments to fast and targeted support for industry.”

Tata Steel UK’s chief executive Rajesh Nair welcomed the announcement and support for local growth.