Cameron insisted Government would offer some help to keep steel alive

Britain's steel industry under threat after Tata announced it was selling up

David Cameron today admitted he would not bail out the steel industry in the same way as the banks because it is less important to the overall economy.

The Prime Minister said the last Labour government had no choice but to pour billions of pounds into the banking sector in 2008 because failure would have ruined the whole economy.

Speaking at an EU campaign event in Exeter, Mr Cameron said the Government was committed to helping a buyer step in to rescue the steel industry hours.

Business Secretary Sajid Javid today visited Port Talbot for a second time to update trade union leaders on his visit to Mumbai yesterday but made no comment beyond a tweet claiming it had been 'constructive'.

Prime Minister David Cameron, pictured today during his remarks at Exeter University, said banks had a 'special position' in the economy

Mr Javid is due to make a second visit to the plant today as he continues efforts to shake off strong criticism the Government had been slow to react to the steel crisis.

But Mr Cameron's remarks today are set to infuriate those who insist Britain must save its steel industry.

He said: 'I want to support the steel industry, I want us to go on making steel in Scunthorpe and in Port Talbot in South Wales.

'We have seen a big reduction in the steel industry over many years and that's not surprising in a developed economy.

'But what we have left we should see as a strategic industry we should try and support.'

The Prime Minister said he 'stood ready to help' a buyer come forward and buy the steelworks.

But turning to a full bail out of the industry, which supports around 40,000 jobs, he added: 'If buyers need support and there is commercial support we can give, we are happy to look at that.

'There is a reason, in defence of the last Labour government, for supporting the banks when they got into difficulty.

'The difference between a bank and another business is if a bank goes bust and collapses it can actually take down the whole economy with it because of the special position banks have in terms of lending money to so many other businesses.'

Mr Cameron insisted his reforms to banking regulation meant in the future a bank bailout would not be funded by taxpayers but shareholders.

The PM insisted he believed it was possible to get a 'resolution' for Port Talbot.

Ahead of his latest visit to South Wales, Business Secretary Sajid Javid said he would be 'getting under the bonnet' of the Port Talbot steelworks business

Mr Javid said he was able to give a 'constructive' update to the unions at Port Talbot following his visit to Mumbai yesterday

Mr Javid returned to the plant today after a whistlestop visit to Mumbai yesterday but left without public comment.

He tweeted he had been able to offer a 'constructive' update to the unions.

And Community union president Alan Coombs said there was 'light at the end of the tunnel.

He said: 'At the end of the meeting, the million-dollar question was 'what guarantees have we had from Mumbai?''

'I was very encouraged by what he said - that Tata are not going to forget about their values and they are going to be responsible sellers. They are going to give the appropriate time to get a buyer in.

'I appreciate what Tata have done for us in Port Talbot over the years, but everybody understands that Tata is not a bottomless pit and they are not continuing with it.

'It has been a very frustrating process, but there is some hope. A week or so ago it was the worst-case scenario. That seems like a million miles away now.

'There does seem to be light at the end of the tunnel - even though there is nothing concrete at the moment.'

Last night, Labour's shadow business secretary Angela Eagle demanded the Government do more.

She said: 'Labour has consistently called for decisive action to help the steel industry and stand up for the livelihoods and life chances of those communities who depend on it.

'Labour has a four point plan to secure the future of the industry and have argued that Parliament should have been recalled to hold the Tory Government to account.

'The collapse of the steel industry would mean a £4.6bn cost to government over the next ten years, 40,000 jobs lost, and devastation for steel making communities. The government can't afford not to act.'

Mr Cameron made his latest intervention on the steel crisis at a question and answer session with students at Exeter University today, pictured

Ahead of today's visit, the Business Secretary had said he would be 'getting under the bonnet of the business' as he moved to shore up the Government's role in the crisis.

Tata announced its plans for a sale in the wake of losses amounting to £1million a day.

Sanjeev Gupta, the head of Liberty House, the only company to publicly express an interest in Tata's plants, said the process would take months.

Mr Javid held a two-hour meeting with Tata officials in Mumbai, just over a week after the company made the shock decision to sell its loss-making UK assets.

He said Tata will allow a 'reasonable amount of time' for the process to be completed.

The minister stressed that the Government wanted to work with any prospective buyer, saying 'a number' of people had already started coming forward.

'I would like to see many more come forward when the formal process begins,' he said.

Mr Javid met Tata chairman Cyrus Mistry and other company officials to discuss the planned sale.

He said afterwards that he understood there would be some 'issues' to deal with, such as power, which the Government 'might be able to help further with'.

Mr Gupta said buying Tata's UK steel business was a 'daunting' prospect, especially as the sale announcement was so unexpected.