Rescue efforts for the steel industry in Port Talbot have become mired in Brexit worries, with Tata Steel pulling back from a sale of its plant while it works out the implications of the UK leaving the European Union.

Tata Steel, which has at least two bids and a management buyout plan to consider for the site in south Wales, is thought to have paused the process to consider the future of EU trade deals, as well as the liabilities in the group’s £14bn pension scheme.

One source familiar with the bidding process complained that the Indian parent company has been dragging its heels. “There’s no point hiding behind Brexit. The company has been in limbo for nearly four months. This needs to be resolved and there are people ready, willing and able to resolve it,” they said.

Spokespeople for Tata did not respond to a request for comment.