Benn blasts Lib Dems over axed Forgemasters loan

Hilary Benn said axing the Forgemasters loan and failing to back train firm Bombardier – which has missed out on a train-building contract in Derby – were among the iconic issues which would see Nick Clegg’s party punished.

Labour politicians fought a bitter, but ultimately unsuccessful, battle to convince the coalition to reverse the decision to axe the loan, which had been offered by Labour in the dying days of its administration. The company has since insisted it does not want to be used as a political football, but Labour has used the decision to lambast Mr Clegg, the Deputy Prime Minister and Sheffield Hallam MP.

In one of the final speeches to Labour’s conference yesterday, Mr Benn, the Shadow Leader of the Commons, mocked the Liberal Democrats for keeping the Tory Government in power.

He said: “Why are they unhappy? Well we know why.

“Cancelling the loan to Forgemasters, not backing Bombardier in Derby where British skill and British engineering has been building trains for 170 years, and tuition fees.

“Nick Clegg made a promise. He broke it. And that’s why people will never trust the Liberal Democrats again.”

Mr Clegg and fellow Ministers have insisted the loan, which would have helped the company buy a giant press to manufacture nuclear components, had to be cancelled because it was unaffordable and should never have been offered by Labour.

Leeds Central MP Mr Benn said beating the Liberal Democrats was “pleasure” but told delegates “beating the Tories is business”, as he said the Government was not serious in its claim that “we’re all in it together”.

Mr Benn’s crowd-pleasing speech largely consisted of a sustained attack on the Tories as he sought to rally delegates to get back out onto the streets to meet voters and campaign for Labour.