Businesses across South Wales are being invited to apply for grants of up to £1.5 million under a new funding programme designed to drive economic growth and job creation in the wake of Tata Steel UK’s transition to greener steelmaking.
The Economic Growth & Investment Fund, administered by Neath Port Talbot Council on behalf of the UK Government and Tata Steel, is now open to companies operating in Neath Port Talbot, Swansea and Bridgend. The scheme offers grants ranging from £300,001 to £1.5 million to support expansion, innovation and long-term investment.
Backed by more than £11.7 million in total funding, the initiative forms part of a broader package aimed at reshaping the regional economy as Port Talbot undergoes one of the most significant industrial transitions in decades.
The fund is explicitly geared towards sectors expected to play a central role in the region’s future economy. These include advanced manufacturing, engineering, renewable energy, digital technologies and industries aligned with the emerging green economy.
Eligible businesses can apply for support to fund capital investment projects such as new machinery, facility upgrades, technology adoption or diversification initiatives. The objective is to help companies increase productivity, unlock new revenue streams and create high-value employment opportunities.
Applicants will be required to demonstrate clear economic impact, including measurable job creation, private sector investment and innovation within their respective industries. Match funding will also be mandatory, ensuring businesses have a financial stake in the projects they propose.
The launch comes as South Wales continues to adjust to the structural changes brought about by Tata Steel’s decarbonisation strategy, including the shift towards electric arc furnace technology and reduced reliance on traditional blast furnaces.
Steve Hunt said the transition represents a pivotal moment for the local economy, with the fund offering a critical opportunity to support businesses ready to scale and adapt.
He emphasised the importance of strengthening local supply chains and building resilience, noting that the council aims to back ambitious firms capable of delivering long-term economic benefits across the region.
The initiative sits within a wider programme led by the Port Talbot Tata Steel Transition Board, which has already allocated £122 million to support workers, businesses and regeneration efforts.
Jo Stevens described the fund as a clear example of collaboration between government and industry to support communities through industrial change.
She said the investment would help attract new businesses, stimulate growth and create high-quality jobs, reinforcing the government’s commitment to safeguarding the future of steelmaking while supporting economic diversification.
Rajesh Nair confirmed that Tata Steel UK is contributing £5 million to the fund, underlining its intention to remain a key stakeholder in the region’s long-term development.
He said the funding would help attract new businesses, encourage innovation and support skills development as the area transitions towards a more sustainable industrial base.
The company’s involvement reflects a broader strategy to mitigate the economic impact of decarbonisation while fostering new opportunities in clean industry and advanced manufacturing.
The fund will operate through a competitive application process, with proposals assessed on economic impact, value for money, deliverability and innovation.
Priority is expected to be given to projects that align with regional growth strategies and demonstrate the potential to generate lasting economic value.
For businesses in South Wales, the scheme represents one of the most significant funding opportunities currently available, offering both capital support and a platform to participate in the region’s industrial transformation.
As the UK accelerates its transition to a low-carbon economy, initiatives such as this are likely to play a crucial role in ensuring that traditional industrial heartlands are not only protected, but repositioned for future growth.
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Tata Steel transition fund opens with grants of up to £1.5m for Welsh businesses