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Jeremy Corbyn has said Redcar’s steelworks could have been saved as he unveiled plans to support UK manufacturing.

The Labour leader launched his “Build it in Britain” policy on Tuesday and highlighted the failure to rescue the SSI plant, which closed in 2015 with the loss of thousands of jobs.

Mr Corbyn promised Labour would use state aid powers “to the full” to support Britain’s manufacturing sector following Brexit.

The Conservative Government - which included then Teesside MP James Wharton as Northern Powerhouse minister - were strongly criticised by local Labour MPs for their failure to save the huge loss-making facility.

(Image: PA)

Ministers insisted at the time that they were powerless to step in and help, because of European Union state aid rules.

Mr Corbyn said: “We allowed Redcar to close down when it could have been saved, eventually Port Talbot was saved in the steel industry.

“Too often, really good ideas that are developed here don’t get brought through to production because nobody is prepared to invest in them.”

Asked whether his policy echoed the protectionist policies of US president Donald Trump, Mr Corbyn said: “Not at all. Absolutely not at all.

“What we are saying is invest in our manufacturing base so that we can trade with other people.

“Germany does that, France does that, Italy does that, Spain does that, we don’t.

“It’s not protectionism, it’s the opposite because that gives us a chance to trade in the future."

During a visit to train manufacturer Bombardier in Derby, Mr Corbyn spoke to employers, workers and union representatives about how the next Labour government planned to prioritise British manufacturing.

Since the SSI closure, the South Tees Development Corporation has been set up to regenerate 4,500 acres of land, including the former SSI facility.

Up to 100 investors are said to have shown interest in the site

This week Yorkshire firm PMAC announced plans for a £250m waste to energy plant at Redcar Bulk Terminal (RBT) on the South Tees site.

It is expected to create 100 permanent jobs, with a further 400 in construction.

The announcement comes a fortnight after RBT signed a key agreement with Sirius Minerals to handle 10m tonnes of fertiliser each year,

On Tuesday, Tees Valley Mayor Ben Houchen met Chancellor Philip Hammond as local leaders continue efforts to take full control of the site.

He has said that five key projects which have shown interest could lead to around £10bn of investment.