Forgemasters could get second loan chance

The Government has been urged to continue trying to secure funds for a firm to build components for the nuclear industry after it controversially withdrew an £80m loan.

The planned loan to Sheffield Forgemasters was cancelled after a number of projects were reviewed shortly after the coalition Government took office.

The Business Select Committee said axing the loan, which was announced by Lord Mandelson when he was Business Secretary, was an "easy cost saving", adding: "While this is a legitimate way to proceed, the department should have been more transparent in articulating this process and not hidden behind the simple defence of affordability."

MPs said they welcomed an undertaking given by Business Secretary Vince Cable that he would "entertain" a fresh application from the firm.

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