Cancellation of loan to Sheffield Forgemasters 'a colossal error of judgement'

Unite, has branded the decision to cancel 12 projects totalling £2 billion including an £80 million loan to Sheffield Forgemasters “a colossal error of judgement.”

Derek Simpson, Unite joint general secretary, said: "The Con-Dems’ decision not to support companies like Sheffield Forgemasters is a colossal error of judgement. It is short-sighted and will leave Britain's manufacturing sector trailing behind its competitors.

“There is only one other manufacturer in the world which builds the forgings that Sheffield Forgemasters produces.

“This is an appalling decision because it denies UK manufacturing the opportunity to become a supplier on a global scale . Every other country in Europe sees the value in supporting its industries and jobs.

“This is a kick in the teeth to the community in Sheffield. During the election campaign Nick Clegg was keen to vow extra support to areas like Sheffield, but now the Con-Dem government has turned its backs on this local business.

“We are urging the Treasury to reconsider this decision if it wants to nurture Britain's skilled manufacturing base.”