Clegg accused of deliberately misleading Commons over Forgemasters

Deputy PM Nick Clegg

Two Labour backbenchers have complained to the parliamentary standards watchdog, alleging Nick Clegg deliberately misled the House on the reasons for the cancellation of the loan to Sheffield Forgemasters, according to the Financial Times.

Barry Gardiner, Labour MP for Brent North, and Rachel Reeves, MP for Leeds West, have written to John Lyon, parliamentary commissioner for standards, claiming that Mr Clegg has knowingly misled MPs and tried to cover it up.

The claim relates to the Deputy Prime Minister’s assertion that Forgemasters shareholders had refused to dilute their shares to raise money. Mr Clegg has since admitted his mistake, but has yet to apologise to the house for this error, more of which here.

According to the FT, the letter reads:

“We believe that the Rt Hon member for Sheffield Hallam has misled the House. We believe that he did this knowingly.

“We consider that he has failed to take any opportunity to correct the record or to apologise to the House and that a serious contempt over an issue of considerable political importance has therefore been committed.”

A spokesperson for Mr Clegg has dismissed the complaint as “just another example of Labour MPs playing politics with the interests of Sheffield Forgemasters instead of facing up to the fact that it was the financial irresponsibility of the previous Labour government which made the loan unaffordable”
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