But the Sheffield Forgemasters scandal is going to swell as it shows the crude and incompetent workings of the ConDem government. It highlights how Nick Clegg does not understand that all politics is local and if you betray the city where you are an MP and viciously slur one of its most respected business leaders you will not be forgiven or forgotten.

Late last night in the Commons there were amazing scenes as a hapless Tory treasury minister had to explain why a top Tory donor had successfully intervened to stop the agreed loan of £80 million to Sheffield Forgemasters. Earlier this year treasury officials poured over the details of this loan needed to help the company buy a giant press to make forgings for the new nuclear plant needed to replace Britain’s ageing nuclear power stations.

Whitehall agreed that this loan which was hedged in with all sorts of qualifications was a good proposal even at a time of fiscal austerity.

Then came the election. Shortly after the ConDem government was formed from the right-wing Sheffield Tory businessman, Andrew Cook, told Cameron to kill the deal.

Cook has given £500,000 to the Tories and paid for plane flights by David Cameron. In Sheffield his reputation as a rightwing Europhobe, and union-busting boss is well known. There are other Cook stories not fit for a family website. His sister is the former Tory MP, Angela Knight, who heads the British Bankers’ Association. British banks, it was announced yesterday, have refused to step in and provide the loan for Sheffield Forgemasters on terms the company can afford.

Nick Clegg as a Sheffield MP should have tried to support this iconic Sheffield firm. All politics remains local. Can anyone imagine John Prescott sacrificing a Hull company to please the treasury? The loan could have been reduced or repackaged but Clegg rolled over to do what the Tories wanted.

But Clegg as we can see with his gaffe over the “illegal” Iraq war is just inexperienced. The idea that a minister can stand at the despatch box and speak in a personal capacity is as laughable as it is unconstitutional.

Clegg went further. On June 21 he made an extraordinary allegation against Sheffield Forgemaster’s CEO, Dr Graham Honeyman, namely that Dr Honeyman was protecting his shareholdings by not seeking private help also needed investigation. On 21 June Nick Clegg said: “Do I think it is the role of government to help out owners of companies who do not want to dilute their own shareholdings? No I don’t.” A furious Dr Honeyman wrote to the Yorkshire Post on 23 June rebutting Clegg’s and the PM’s allegations pointing out that “No dividends have been paid because this company does not hinge around making money for shareholders or individual gain. It has been at considerable personal risk that I have been involved” Honeyman declared.

These slurs and smears against Dr Honeyman are a disgrace. If Labour ministers had been involved in a similar scandal all hell would have let loose. But this story is not being picked up anywhere, so far. It should be as it shows both how Tory donors are now involved in key ConDem decisions, how Nick Clegg cannot help his own constituents and the city where he was parachuted in as an MP, and how he lashes out with foolish, ill-advised statements unbecoming an MP let alone a minister.

Last night in the Commons the saddest sight was Vince Cable, sitting hunched and miserable as Clive Betts, Angela Smith, Pat McFadden and Meg Munn unveiled this saga to an incredulous Commons. Tory whips came rushing in to try and get some ConDem MPs sitting to support their spokesman. Simon Hughes shrunk into the corner seat close to the bar of the Commons as if ashamed to have anything to do with Clegg, Cable and the other LibDem poodles.

This story is not over yet. But Nick Clegg will not win re-election in Sheffield unless as a Conservative Liberal without a Tory candidate against him.