George Osborne responds to claims he is putting China ahead of UK steel industry

'The Conservative Government has continually failed to take action', Clegg says

The UK's largest steel works in Port Talbot, where thousands of jobs are at risk (PA)

George Osborne has defended the Government's actions over the mounting steel crisis as the Business Secretary, Sajid Javid, prepares to meet workers at the Port Talbot plant.

The Government has come under fire over its response to the decision by Tata Steel to sell off its UK assets.

The move has put up to 40,000 jobs at risk.

But Mr Osborne has insisted it is doing everything "practicable and possible" to allow tougher tariffs on cheap steel.

Responding to accusations that import taxes were being blocked, Mr Osborne said Britain was working with other countries to make sure tariffs were in place on imports of unfairly cheap steel from countries such as China.

Speaking during a visit to Manchester, the Chancellor said: "It's a really difficult time for the steel workers and their families and we are doing everything that is practicable and possible to help those families, to help communities affected like Port Talbot and Scunthorpe, and to make sure that there is a long-term future for Britain's steel industry.

"There's a global crisis in steel, you go to all these other countries, they have got similar problems because the price has fallen.

"We are cutting the taxes on energy bills at steel plants to help them, we are making sure that as we build things like the new high speed railway we are using British steel - and then internationally we are working with others, including other European countries, to make sure there are tariffs when you get imports of unfairly cheap steel from countries like China."

As protesters gathered outside the Port Talbot plant, Mr Javid met with Stephen Kinnock, the local Labour MP, and Alun Cairns, the Secretary of State for Wales to discuss the crisis.

Mr Javid, who has faced calls to consider his position over his handling of Tata's decision to sell off its UK assets, described his meeting as "very productive".

Much of the steel crisis has been blamed on China dumping cheap steel on European markets - and ministers have been accused of prioritising trade links with China over support for the UK steel industry.

Ex-deputy prime minister Nick Clegg blamed Mr Osborne for the policy.

"George Osborne has put his special relationship with China above the UK's best interests," he said.

"The Conservative Government has continually failed to take action and missed many opportunities to help the UK steel industry, such as taking steps to prevent dumping of cheap Chinese steel on the UK market.

Speaking to the BBC Radio 4 Today programme, European Steel Association spokesman Charles de Lusignan said: "We have been talking about the lifting of the lesser duty rule in particular for a long time.

"The fact is that the UK has been blocking this. They are not the only member state but they are certainly the ring leader in blocking the lifting of the lesser duty rule.

"The fact that the UK continues to block it means that when the Government says it's doing everything it takes to save the steel industry in the UK, but also in Europe, it's not.

Mr Javid will also defend the response to the crisis, insisting that without the Government's intervention steelworkers in Port Talbot could have been faced with the immediate closure of the plant rather than it being put up for sale.

A spokesman for the Community union said: "Steelworkers across the country will be shocked that it has taken this long for the Government to finally wake up to the crisis facing our steel industry.

"Sajid Javid cannot simply arrive at Port Talbot and read out his list of 'achievements' - this week's news is proof that Government action thus far has been woefully inadequate."

Unite Wales secretary Andy Richards said: "Steelworkers at Port Talbot and across Tata steel will want to know just exactly what Sajid Javid intends to do to safeguard their industry, their livelihoods and their communities.

"So far all they have received is tea and sympathy from afar with no real concrete solutions for the industrial crisis facing the nation."

PA