The UK government is set to officially confirm a £500 million ($654 million) support package for Tata Steel’s Port Talbot plant, marking a crucial moment for Labour's industrial strategy.

Business Secretary Jonathan Reynolds will reveal the details of this support in the House of Commons on Wednesday, according to sources close to the matter.

The announcement comes after Tata Steel warned that it would accelerate the closure of its two blast furnaces at Port Talbot if planned strikes went ahead, potentially leading to the loss of up to 2,800 jobs. Workers had previously suspended a planned all-out strike in response to this warning.

Although the £500 million support was initially agreed upon by the previous Conservative government, the specific terms were still under negotiation with the new Labour administration. Reynolds has emphasized the importance of saving jobs at the plant, especially as Tata Steel plans to replace the blast furnaces with more environmentally friendly but less labor-intensive electric arc furnaces.

"Negotiations with Tata Steel on the future of the site will continue separately. But this government will not wait for a crisis to overtake us before acting," said Welsh Secretary Jo Stevens.

The closures, announced in January, are part of Tata Steel’s strategy to revitalize its UK operations by adopting lower carbon electric arc furnaces, with £500 million ($632 million) in government funding supporting this transition.

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