Anger as steel firm snubbed at Clegg meeting

Mr Clegg arrived for the meeting at Sheffield Town Hall with business organisations to discuss Forgemasters at 12.30pm and left after around an hour – but it later emerged that nobody from the company had been invited to take part.

The Deputy Prime Minister refused to answer questions about what had been discussed and also avoided people who had mounted a protest about the Forgemasters decision outside the Town Hall.

Mr Clegg later met with the chairman of Forgemasters and spoke to the chief executive on the telephone.

Sheffield Central MP Paul Blomfield criticised Mr Clegg.

He said: "When I met with the executive team at Forgemasters after Mr Clegg left the Town Hall they simply told me they had not been invited to any meeting. The whole thing is extraordinary.

"Having given the public impression that he is trying to find a solution, it actually turns out that he can offer nothing to Sheffield, nothing to local people and absolutely nothing to local industry."

The decision to axe the loan, which was originally announced by the Labour government to help build a 15,000-tonne press to make components for the nuclear industry, was announced last week.

It was one of 12 schemes costing 2bn which Chief Secretary to the Treasury Danny Alexander said would be halted immediately. Another 12, including Sheffield's new retail quarter, were put on hold for review.

Flanked on the stairs of the Town Hall by Sheffield Council leader Paul Scriven, who did take part in yesterday's meeting, Sheffield Hallam MP Mr Clegg made a statement about industry in Sheffield.

He was unable to offer specific support to the company and repeated the Government's belief that the loan "simply wasn't affordable" but added: "Let me be absolutely clear – this is not the end of the story.

"Officials in the Department for Business have been instructed to work actively with Forgemasters.

"I will be having further meetings as well and I hope we will be able, together, to make sure that there is a successful future for Forgemasters as there is, of course, for manufacturing in Sheffield as a whole."

Last night a spokesman for Mr Clegg confirmed that Forgemasters had not been invited to the talks but said the gathering had not been arranged by Mr Clegg's office.

He added: "The Deputy Prime Minister did attend a prearranged meeting with the chairman of the firm later in the afternoon and then spoke with the chief executive by phone."

The spokesman said the purpose of the meeting had been to discuss the loan with other parties, including the Master Cutler James Newman, Sheffield Chamber of Commerce and the Federation of Small Businesses.

Labour councillor Harry Harpham, who helped organise a demonstration outside the meeting, said he was furious that Mr Clegg had failed to come out and speak to people concerned about Forgemasters.

He said: "I thought it was terrible. Why is he hiding from the people of Sheffield? He hasn't got the arguments or the answers to justify the decision to take 80m away from this company.

"People feel that as a Sheffield MP he is not standing up for Sheffield."

A spokesman for Sheffield Forgemasters last night confirmed that neither the chief executive, Graham Honeyman, nor the chairman, Tony Pedder, was invited to the gathering.

He said: "Nick Clegg today met with Tony Pedder, who is chairman of NHS Sheffield and chairman of Sheffield Forgemasters.

"The meeting was primarily to discuss health service matters. The 80m government loan to Sheffield Forgemasters was also discussed, but not in specific detail."