DHAKA: Fresh concerns have emerged over the future of Tata Steel’s UK assets, which include the huge Port Talbot works.

It is understood that the Indian owners of the plant fear that the current UK political uncertainty could derail efforts linked to the planned sale, reports the BBC.

Concerns centre on proposed changes to the pension scheme which are crucial to securing the future of the business.

The government says its consultation on the scheme is closed, and it will respond in due course.

Tata announced in March that it was considering selling its UK steel business, putting 11,000 jobs at risk.

But buyers are reluctant to take on the huge steelworkers’ pension scheme, which has 130,000 members. Including spouses and children, hundreds of thousands of people depend upon it.

The scheme also has a deficit of about £485m.

In May, the business secretary Sajid Javid launched a consultation outlining options to resolve the pensions issue.

But it is understood that Tata now has concerns that the political uncertainty surrounding the Tory leadership battle could derail the process.

‘It’s clearly an incredibly busy time in UK politics,’ a source close to the company said.

‘Nevertheless, the company still hopes that the hundreds of thousands of people in Britain who are dependent on a steel pension will not be left worse off by the current political leadership uncertainties.’

The consultation on Tata’s pension scheme is being handled by the Department of Work and Pensions.

BDST: 1307 HRS, JUN 30, 2016
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