Labour MPs lodge official complaint against Clegg

Liberal Democrats last night dismissed the complaint and accused Labour MPs of playing politics with the company as standards commissioner John Lyon decides whether to investigate.

Labour backbenchers Rachel Reeves, MP for Leeds West, and Barry Gardiner have lodged the complaint claiming Mr Clegg misled MPs and had failed to apologise after he suggested company bosses had not been willing to dilute their control of the company to attract private investment.

The Government was forced to issue a written statement shortly before the summer recess in which Business Secretary Vince Cable accepted this had never been the case, but Labour MPs are insisting that Mr Clegg, the MP for Sheffield Hallam, should apologise.

The complaint is the latest stage in angry exchanges over the axing of the loan, which has forced Forgemasters to shelve plans to buy a new forging press to make components for nuclear power stations.