Tata steel shut down would leave £4.6 BILLION black hole in UK economy

[Image: Getty.]

[Image: Getty.]

The closure of the Tata steel plants would leave a £4.6billion blackhole in the British economy, experts warned.

The study says the Treasury stands to lose £2.2million a day through additional benefit payments and lost tax revenue if the plants go under.

More than 40,000 jobs are at risk if no buyer can be found for Tata’s UK operations, including the Port Talbot works.

An analyis by the IPPR think tank says the cost to the Government of lost tax revenue, welfare and housing costs would be £800million a year or £4.6billion over the next ten years.

In addition, the reduction in household spending would add up to £3billion over the next decade and steel towns face losing millions of pounds in revenue for vital services.

Alfie Stirling, IPPR Research Fellow, said: “The effects of plant closures on the UK could be very serious indeed.

“Our new analysis shows that there is significant fiscal and economic cost to inaction, which the government must take account of when considering its options for Tata Steel.”

Source: Tata steel shut down would leave £4.6BILLION blackhole in UK economy warn experts – Mirror Online

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