Government pulls Sheffield Forgemasters’ loan pledge
A major investment in UK manufacturing today (17 June) fell victim to £2 billion-worth of government cuts. The offer of an £80 million loan made to Sheffield Forgemasters by the previous Labour government was deemed unaffordable as Chief Secretary to the Treasury Danny Alexander announced a list of projects that would now be scrapped or reviewed.
The money was to have funded a new 15,000 tonne press to facilitate the supply of specialist components for nuclear power stations.
Deputy Prime Minister and Sheffield MP Nick Clegg said the loan promised by the outgoing Government was a pre-election ploy to win support in Sheffield.
Funding was also pulled for the Regional Development Agency Yorkshire Forward's planned development of the Outokumpu site in Sheffield, into an industrial park.
Business Secretary Vince Cable said Sheffield Forgemasters said the government hoped the company was able to secure private investment for the project.
Forgemasters chief executive Graham Honeyman told the BBC it was "a huge disappointment to all at the company," but the company would now focus on other elements in its development.
