By Jonathan Davies

Tata Steel has announced plans to cut 720 jobs due to rising costs and the strength of the pound.

The majority of the job cuts will come in its steel bar-making plant in Rotherham.

Tata said that aspect of the business has been underperforming and hasn't been able to keep up with European competitors.

"Energy is one of our largest costs at our speciality and bar business and we are disadvantaged by the UK's cripplingly high electricity costs," said Karl Koehler, chief executive of Tata Steel's European operations.

"And while the UK government announced helpful measures to reduce the impact of its high energy taxes a few years ago, these measures still haven't been introduced.

"We want to play our role in reinvigorating the UK's manufacturing industry, but increasing imports and high energy costs have further undermined the competitiveness of foundations industries."