Labour’s loans to manufacturing under threat
By politics.co.uk staff
Huge loans earmarked by the Labour government to help the UK car and manufacturing industry may be under threat.
The Times reports today’s that loans of £270 million, to Vauxhall cars, £90 m to Sheffield Forgemasters, and £379m to be lent of Ford are all under review by chief secretary to the Treasury David Laws.
He will decide next week whether to go ahead with the loans next week, and the paper reports he is taking legal advice on whether the treasury can go back on the loans guaranteed by Lord Mandelson, the former industry minister.
The review is part of a programme of savings in public spending of £6 billion in the first year of this government in order to pay off some of Britain’s record deficit.
A Treasury source told the Times: “The point of the review is to see things that were wasted and not value for money. In order for us to reconsider they would have to be considered poor value for money. I have not seen it suggested that they were.”
