If ever there was a necessary state intervention, it was the loan agreed by a dying Labour government to Forgemasters to finance the production of components for nuclear power stations – of which there is a worldwide shortage of capacity.
Yet, one of the first things the Clegerons did was cancel the loan – and on grounds that now look very dubious indeed, if The Guardian and the rest of the media have got the details right.
If there is demand for these things there is no need for a Government loan. Investors would be throwing money at Forgemasters. There must surely be a reason why they couldn't get all the funding privately. Or perhaps were discouraged from getting it all privately by the Government waving our chequebook about.*
The Lib Dems are opposed to nuclear. The Conservatives are not. The coalition fudge was 'no government money for nuclear'. The canceling of the Forgemasters loan appears consistent with the fudge. The consideration of it being state support is a bit of a red herring imo, though forms a handy further excuse to not lend the money. If the loan were to be at commercial rates it couldn't be argued to be state support. A knock on for this will be higher energy prices - which is precisely what they want as it reduces the effective subsidy that eco-wibble energy receives.
All they needed to do was pick one reason and stick with it but they can't even do that. No taxpayer money for nuclear OR wheel out the EU state aid bogeyman OR want to make renewable more attractive. It looks to me like they are going down a predetermined route of increasing energy prices and scraping the barrel for whatever fig leaf they can find to cover up their intent.
* EDIT: Does anyone know where the ultra massive forge was going to be? A thought occurred to me that other countries might have their forges somewhere with easy access to shipping so that international orders were easier to accommodate.