Tata, the giant Indian conglomerate, has confirmed plans to sell its UK steel business, sparking panic within the UK government as ministers try to rectify the situation.

The Indian giant has spent the last few months looking for strategic alternatives to the current ownership of several plants – at Port Talbot, Corby, Shotton and Rotherham – in the UK.

However, Tata’s board – in Mumbai – finally opted for the divestment of its steel facilities in the UK. This move is a hammer blow to the remnants of Britain’s Steel industry, potentially affecting thousands of steel workers.

Labour leader Jeremy Corbyn said “it is vital that the government intervenes to maintain steel production... both for the workforce and the wider economy, if necessary by taking a public stake in the industry”. Another official said the government was looking at all viable options. However, a private sector sale is currently the preferred solution.

Tata’s decision reflects the troubles faced by British steelmakers. High production costs, weak domestic demand and low steel prices on the international markets has plunged the sector’s success, leading to thousands of job losses over the past year – especially in Port Talbot.

This is yet another huge blow to Britain’s dwindling manufacturing industry, which is still well behind the levels it operated at pre-recession.

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