TATA STEEL WARNS OF PENSION TIMEBOMB IF BUYER NOT FOUND

Britain faces an “economic and social disaster” if the pension issues facing Tata Steel UK cannot be solved and a buyer is not found, the boss of the steel company has warned.

Bimlendra Jha , chief executive of Tata Steel UK , told MPs there would be “very bad consequences for the taxpayer” if the pension liabilities of almost £15bn facing the business are not dealt with.

Jha was addressing the Business, Innovation and Skills committee as they investigate the demise of theUK steel industry. Around 40,000 jobs are at risk after Tata Steel announced last month that it plans to pull out of the UK , including the Port Talbot steelworks.

The Tata Steel UK boss insisted the company has set no fixed deadline to find a buyer, amid concerns that there may not be enough time to find a saviour.