Coalition axes £105m of Sheffield job creation spending

Of the £2bn in cancelled spending commitments announced by coalition Treasury Secretary Danny Alexander today, around £105m of it seems to come directly from job creation projects in Sheffield.

£80m loan promised to Forgemasters has been axed

An £80m loan to Sheffield Forgemasters, promised by Labour just prior to the election, has been axed, as well as a £13m investment in Yorkshire Forward/OutoKumpu’s project to redevelop a Sheffield steel factory into an industrial park. The loan to Forgemasters was expected to create 180 jobs.

The government’s £12m commitment to Sheffield’s New Retail Quarter, which has been on hold since developers Hammerson could not commit enough funds to complete compulsory purchase orders, has also been suspended.

A huge chunk of Sheffield City Centre has remained essentially derelict for the last three years while development of the new shopping centre has been on hold. Most of the commercial buildings between Devonshire Green and The Moor are vacant, and demolition of the former Fire service headquarters has just begun. It seems likely that this large area of the centre is to remain a ghost town for the forseeable future.

Nick Clegg has yet to comment on the cuts, but considering his Hallam seat is one of the wealthiest in the North, and has been shared between Tory and Lib Dem candidates since time immemorial, I shouldn’t imagine he’s that worried.

Paul Scriven on the other hand, who lost his challenge for Sheffield Central by a few hundred votes is in a much more awkward position. Unfortunately he appears to be on holiday in Wales, and has yet to comment.

UPDATE – 1620 – 17/6/10

According to Labour party worker Rob Newman, “David Blunkett has called Clegg to try and get him to reverse Forgemasters decision. No-one answered in his office. No reply on his mobile” (posted on Twitter)


One response to “Coalition axes £105m of Sheffield job creation spending

  1. Pingback: SheffieldPolitics Review of the Year: 2010 |

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