AN eleventh hour deal with the tax office is being negotiated to ensure Teesside steel workers will be paid their monthly salaries tomorrow.

PHOTOS: The highs and lows of steelmaking on Teesside

HMRC is in talks about a tax rebate deal with SSI which would mean salaries will be paid on time however neither the government nor the steel firm have confirmed that the deal has been agreed.     

The Northern Echo understands reports that salaries will be paid are premature and talks between the government, SSI and its financial backers are ongoing. 

There had been fears the cash-strapped firm would fail to pay wages following the decision last Friday to suspend production at the Redcar plant as it had run out of cash.  

Responding to reports this afternoon that the Northern Powerhouse Minister, James Wharton MP, had claimed the workforce at SSI will be paid tomorrow following government intervention, Redcar MP Anna Turley said: "Despite the Minister’s (James Wharton's) claims, SSI and BIS (Dept for Business) have been unable to confirm with me that the workforce will be paid tomorrow.

“The workers and their families have spent the last week worrying about whether they will receive their wages and be able to pay the bills so for their sake I hope that Mr Wharton is not filling them with false hope.

“We have been pushing for the government to release these payments for days. If true it is fantastic news and will be welcomed by the workers. I am pleased the pressure we have been putting on the government and SSI with the Save our Steel campaign and Community Union has paid off.

“We now need to see urgent action from David Cameron to ensure the blast furnace remains lit and the future of steelmaking on Teesside secured.”

Paul Warren, Community rep and Chair of the Multi-Union at SSI, was concerned that today's rumour had not been communicated officially to workers. He said: “Unfortunately, the company are yet to confirm that workers will indeed be paid tomorrow. If it is true then we’ll be pleased to see the pressure we’ve been putting on SSI and the government is finally paying off. It would be a small but very important step.

“We must now keep up that pressure and ensure that a deal to secure the future of the Redcar steelworks is reached. Steel making here is at a minute to midnight but the fire is still alight. We won’t give up fighting until David Cameron gives in and agrees to save our steel.”

SSI steel workers, their families and friends will hold an emergency rally in Redcar today to call on the Prime Minister to save the local steel industry.

Supporters of the Save Our Steel campaign will gather in the Majuba Road Car Park, Redcar, from 6.45pm this evening.

Follow the rally live here at northernecho.co.uk

Anna Turley MP and Paul Warren, chair of the SSI Multi-Union Committee, will address the crowd.

At 7.30pm supporters will be asked to hold a torch aloft and join a chant of 'Save Our Steel’.

Posters will be distributed to the crowd for people to put in their windows at home.

Speaking ahead of the rally, Mr Warren said: “It only takes the Prime Minister a minute to make the right decision for the future of Teesside steel.

"Our torches will be a sign that there is a light still burning in that furnace, a light that is at the heart of Teesside. We want to keep the light burning.

"For the sake of the workers, our families and our community the government must take action to save our steel. That will be our message at the rally.”