New UK business secretary Jonathan Reynolds has stressed there is a “better deal available” for the Port Talbot steelworks and UK deindustrialisation should be prevented, but he stopped short of guaranteeing jobs at the plant.

The situation at Port Talbot is a “major priority” for the new government, and both Reynolds and new Prime Minister Keir Starmer have already spoken to Tata Steel representatives, Reynolds said in an interview with the BBC on Sunday.

“It’s not about underwriting lossmaking businesses in a way, perhaps, we might have thought about industrial policy in the past,” he noted. “It is about being a partner for investment in the future.”

“There is more money available for the steel industry under our plans for government. But that’s about making sure we meet this transition with the private sector together and recognise … how we have to make sure that decarbonisation is not deindustrialisation … There is a better deal available for Port Talbot and the steel industry as a whole,” he added in the interview monitored by Kallanish.

“I do want things in exchange for money we will coinvest with the private sector around jobs and technology. I think that’s a reasonable way to make sure public money is being well spent,” he continued.

Pressed on whether he could guarantee jobs at Port Talbot, he concluded: “I’m going to make sure that job guarantees are part of the negotiations that we’re having.”

The Labour Party won last Thursday’s UK general election by a landslide and assumed power on Friday, ending 14 years of Conservative government. Steel industry trade unions are pinning considerable hope on the new government being able to retain some primary steelmaking at Port Talbot.

Tata Steel secured last year a commitment for £500 million ($640m) in funding from the previous government for its plan to transition to electric arc furnace steelmaking by 2027. The move also involves closing the existing blast furnaces in 2024. The agreement was however not signed before last week’s election.

Tata Steel closed blast furnace no.5 at Port Talbot at the end of last week, according to schedule. BF4 is due to close by end-September.