Bad news for Sheffield Forgemasters after recent government spending cuts
The government has dealt a massive blow to British manufacturing and defence companies by withdrawing £2bn of programmes, announced in the final days of the last administration, ahead of the next spending review.
In March Sheffield Forgemasters was awarded an £80m loan which would make the company only the second in the world able to make the largest size of forgings.
When Lord Mandelson visited Sheffield in March he said that the governments decision to support the company was ‘part of their intention to ensure the UK is able to supply the next generation of nuclear power stations and compete for orders worldwide’.
Some have blamed the decision on the Liberal Democrats opposition to nuclear power, but the government said the decision was ‘no reflection on its nuclear policy’.