Deputy PM ‘opens door’ for Forgemasters to revisit loan

DEPUTY Prime Minister Nick Clegg has indicated the decision not to loan money to Sheffield Forgemasters could be revisited.

The coalition government cancelled an £80m loan to the Sheffield-based company to build parts for nuclear power stations as part of a review of Labour’s spending decisions in June.

But an interview with BBC Radio Sheffield, Mr Clegg said they could look again at such a project.

“I would dearly like to see us support it if we can,” he said. “If Forgemasters want to return to a project like that, and if it works, and if we can do it, then we stand ready to try and revisit this and provide help.”

He said the problem with the project had been the affordability from that year’s budget.

A spokesman for Mr Clegg said there was no question of the government revisiting the original decision to cancel the loan to Sheffield Forgemasters but said it would look at any new proposal that the company might make.

It is thought Sheffield Forgemasters could apply to the Regional Growth Fund for cash for the project.