Union leaders have pressed the coalition Government not to withdraw an £80 million loan given by the previous Labour administration to an engineering firm, warning it would lead to thousands of job losses.
Unite wrote to the Business Secretary Vince Cable urging him to press ahead with the loan to Sheffield Forgemasters, announced by his predecessor Lord Mandelson to help the works build a new forging press to make products for the nuclear power industry.
The union said failure to support the loan would cost thousands of jobs and jeopardise Britain's preparations to build a new generation of nuclear power stations.
The move followed an announcement by the Government that it would review Labour's spending decisions taken since the start of the year.
Sheffield born Unite leader Derek Simpson also made a personal plea to Deputy Prime Minister Nick Clegg, who has his constituency in Sheffield, to use his influence to support the company
Mr Simpson said: "Failure to support Sheffield Forgemasters would be a colossal error of judgment. The company is unique, there is not another company in the world that has its skills and expertise.
"Britain needs companies like Sheffield Forgemasters if we are to meet our low carbon energy needs and build a modern, advanced manufacturing base.
"The uncertainty that the review of this loan and other loans is creating could cost the UK thousands of jobs if there is not a quick and positive decision by the new coalition Government.
"Nick Clegg spent much of the election campaign talking about Sheffield and the need to support jobs in the area. If he is as proud of Sheffield as I am he will use his influence to do everything possible to support this very special company."
