Yet again, the state has to step in to save neoliberalism from collapse. Time and time again, it would sink without a trace without handouts from the tax payer.
Tata Steel
Despite a massive £500 million government rescue package, the largest steelworks in Britain are still poised to shed thousands of jobs. This financial support from the government, one of the most substantial in history, is aimed at assisting Tata Steel employees who may be facing redundancy at the Port Talbot site. The aim is to transition from traditional blast furnaces to environmentally friendly steel production methods.
In return, Tata Steel is expected to contribute £1.25 billion toward the redevelopment of the steelworks, which currently employs 4,000 individuals. It is estimated that around 3,000 jobs will be lost, with 2,000 of them located in Port Talbot. Without this package, the total number of expected job losses would have been 8,000.
This rescue package amounts to a third of the £1.5 billion in taxpayer funds initially requested by Tata. Criticism has arisen regarding the flow of information preceding the government’s official statement. The constant leaks regarding this deal have eroded industrial relations and, most importantly, left our members anxious about the future of their jobs based on hearsay and rumors,” stated the General Secretary of the Steelworkers Union Community. “This is unacceptable, and it should not be the way that companies or the government conduct their business. Unions should have been involved throughout this process because it is evident that the interests of the workforce were not adequately considered in the rush to approve a cost-effective decarbonisation deal.”
The GMB union’s General Secretary described the deal as “devastating” for jobs and workers, noting that for years, the GMB had been advocating for investment in this critically important industry. Instead of heeding these calls, the government hesitated and delayed until it was too late, and now thousands of workers, along with their families and communities, will bear the consequences. “Our country cannot be secure without a functional domestic steel industry, and workers must be at the center of plans to modernize it,” said Gary Smith.
The funding is expected to be allocated to the development of a lower-emission electric arc furnace. Port Talbot currently holds the title of the UK’s largest single carbon emitter, according to the government. Replacing the existing coal blast furnaces would result in a 1.5% reduction in the UK’s carbon emissions, they added.
List of just thirty other socialist bailouts:
- Royal Bank of Scotland (RBS): The UK government bailed out RBS in 2008, acquiring a significant ownership stake in the bank.
- Lloyds Banking Group: Lloyds received government support during the 2008 financial crisis, resulting in partial nationalization.
- Northern Rock: The government intervened to stabilize Northern Rock during the financial crisis of 2007-2008.
- Bradford & Bingley: The UK government nationalized Bradford & Bingley’s mortgage and loan books in 2008.
- HBOS: Halifax Bank of Scotland (HBOS) received government assistance and was subsequently merged with Lloyds.
- British Energy: The government provided financial support to British Energy, a nuclear power company, in 2002.
- Network Rail: The government has provided financial support to Network Rail, the owner of the UK’s railway infrastructure, over the years.
- Channel Tunnel Rail Link: The government supported the construction of the Channel Tunnel Rail Link (now known as High-Speed 1).
- Tata Steel: The government has been involved in discussions and financial support for the steel industry, including Tata Steel in Port Talbot.
- Car Industry: Various interventions and support packages were provided to the UK’s automotive industry, including Jaguar Land Rover and Nissan.
- Financial Services Compensation Scheme (FSCS): The government backs the FSCS, which protects savers and investors in case of financial institutions’ failure.
- Quantitative Easing (QE): The Bank of England, with government approval, implemented multiple rounds of QE to stimulate the economy.
- PFI (Private Finance Initiative): The government has had to step in and address issues with some PFI projects, such as hospitals and schools.
- Royal Mail: The government provided financial support when Royal Mail was in financial difficulty.
- NatWest Group (formerly RBS): Ongoing government ownership and support for NatWest Group after the 2008 bailout.
- Airline Industry: Airlines like British Airways and Virgin Atlantic received support during the COVID-19 pandemic.
- Cultural Recovery Fund: Support for cultural institutions and venues impacted by the pandemic.
- Self-Employed Income Support Scheme (SEISS): Financial assistance for self-employed individuals affected by COVID-19.
- Furlough Scheme: The Coronavirus Job Retention Scheme (furlough) supported millions of workers during the pandemic.
- Business Rates Relief: Various schemes providing relief to businesses during COVID-19.
- Hospitality Sector: Support for restaurants, pubs, and the hospitality industry during the pandemic.
- Green Investment Bank: Government funding and sale of the Green Investment Bank to Macquarie Group.
- British Airways Pensions: Government support for British Airways’ pension scheme.
- Post Office: The government provided financial support and addressed issues related to the Post Office network.
- Clydesdale Bank: Support for Clydesdale Bank during the financial crisis.
- National Health Service (NHS): Ongoing government funding and support for the NHS.
- Brexit Adjustment Fund: Financial support for businesses affected by Brexit changes.
- HS2 (High-Speed Two): Government funding for the construction of the high-speed rail project.
- Aerospace Industry: Support for the aerospace and aviation sectors during the pandemic.
- Nuclear Decommissioning: Financial support for nuclear decommissioning projects and liabilities.
The total cost since 1945 of taxpayer-funded socialist bailouts runs into the hundreds of billions, although the exact figure is hard to locate.
Whenever someone attempts to denigrate socialist economics, remind them that it is all around us and that without it, the markets would have long since been buried in their own waste.
Jason Cridland
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