A PLAN for public money to be pumped in to rescue Britain's biggest steel plant from closure has sparked anger that Redcar steelworks was not given similar support last year.

David Cameron will hold an emergency meeting with ministers to discuss the desperate plight of the steel industry after Tata put thousands of jobs at risk by revealing it plans to pull out of its UK business, including the country’s biggest steelworks at Port Talbot.

Tata's Welsh site, which employs 5,500, is thought to be losing £1m a day.

Ministers are concerned the Indian firm could close the plant within weeks if a buyer is not found.

It is understood the Government is looking at offering loan guarantees to potential buyers, but suggestions it is considering some form of re-nationalisation have been ruled out.

The Welsh Assembly has been recalled to discuss the crisis, but Mr Cameron turned down calls from Labour to recall Parliament.

Business Secretary Sajid Javid is returning early from what was planned to be a three-day visit to Australia to lead the government's response.

The Conservatives have been criticised for not sending a representative to a crisis meeting in India, where Tata executives made their decision on Tuesday to sell their loss-making UK interests.

Mr Javid said the steel industry was vital to Britain, but added that he did not think that public ownership was the answer.

He said the Conservatives were determined to try to keep Port Talbot in business, adding: "There are buyers out there. It might require some sort of Government support and we are ready to look at all options."

North-East MPs asked why ministers were prepared to support the South Wales site whereas SSI's Redcar steelworks was allowed to close permanently last year when it suffered a major cash crisis. That led to the loss of more than 3,000 plant and supply chain jobs, and signalled the end of 170 years of iron and steelmaking on Teesside.

Middlesbrough South and East Cleveland MP Tom Blenkinsop, who chairs the Parliamentary steel group, said: "This ongoing uncertainty is a disgrace.

“Any assistance must be made available to retain our British steel making capability perfectly reasonable to step in to maintain assets until market settles.

“If the Government are actively looking into some kind of temporary nationalisation then we need details sooner rather than later. However, when I and Redcar MP, Anna Turley, called for state intervention at SSI in Redcar, we were given a definite 'no' by the Government. Things have certainly changed."

Ms Turley hoped lessons had been learned from the demise of SSI.

She said: "I am glad they are considering all options and hope this is a sign that they have learnt the lessons from the closure of the SSI plant in Redcar last year. I am angry, as all Teessiders will be, that they weren't so willing to act to save the Redcar plant.

"It has taken the tragedy of losing Redcar steelmaking to make the government realise that steel production is a vital economic interest, particularly as a foundation for advanced manufacturing.

"No more prevarication, they must act.”

Roy Rickhuss, general secretary of the trade union Community, who met representatives from Tata in Mumbai, said: "We will not let the steel industry in the UK die. We are not going silently into the night."

Welsh actor Michael Sheen called on the Government to "do all they can" to support steelworkers.

Growing up in the Port Talbot area, the actor famous for portraying Brian Clough and David Frost on film, has often been vocal about the threats facing the steel industry.

Mr Sheen said that places like his home town depended on the steel industry "which has helped build the foundations of Britain's national identity for generations".

Liberty Steel, which has been snapping up troubled UK steel sites at knockdown prices in recent months, said that Tata's downstream operations - the processing divisions - are of interest to them but that taking on an iron and steelmaking plant would be "a huge challenge."

It added: "Our engagement will depend very much on what Tata and the Government are prepared to do to help save these businesses."

Industry insiders warned that unless some of the massive risk is stripped out and Port Talbot's debt burden eased then attracting a buyer will be very difficult indeed.

The Government's response will have to comply with EU state aid rules, prompting Brexit campaigners to claim the industry's future would be brighter outside Europe.

A spokesperson for Britain Stronger in Europe said: “Those who claim that leaving the EU would solve the problems in the steel industry are wrong. Over half our steel exports go to the EU and leaving could actually make the situation worse.

“It is disappointing to see the Leave campaigns seeking to exploit the concerns of families about lost livelihoods for their own short-term political gain.”