A Labour politician, John Healey MP, has described Rotherham as the “forgotten town” of the UK steel crisis. He warns that if the local Tata plant closes, it would have a huge impact on the council’s finances.
Impact on Council Finances
Speaking to ITV Calendar, John Healey highlighted that Tata is the single largest business rates payer in Rotherham, contributing more than £3 million per year to the council budget.
“If the worst comes to the worst and we do lose our steel plant it’ll knock a big hole in the council’s finances.” – John Healey MP
He warned that the collapse of the steel industry would leave a black hole in funds, forcing either deeper cuts to local services or an increase in council tax rates.
Government Response and Local Impact
Criticising the Government for dragging its feet over recent months, Healey insisted it would be incumbent on ministers to fill the gap left by any plant closure. The town has already suffered hundreds of redundancies in the past month.
Business Minister Anna Soubry visited Rotherham amid growing concern over job losses and council funding shortfalls.
Further Reading
Explore related coverage: Politician Describes Rotherham as the ‘Forgotten Town’ of the Steel Crisis
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