Reeves says nuclear investment shows UK ‘back where it belongs'

Independent

19 hours ago

Rachel Reeves has committed £16.7 billion to nuclear power projects as the country shifts away from fossil fuels.
The Chancellor has signed off on £14.2 billion of investment to build the new Sizewell C nuclear plant in Suffolk, while Rolls-Royce has been named as the preferred bidder to build small modular reactors (SMRs) in a programme backed by £2.5 billion of taxpayers' cash.
Ms Reeves will use Wednesday's spending review to allocate tens of billions of funding for major infrastructure projects over the rest of the decade.
Officials hope SMRs will be cheaper and quicker to build than traditional power plants, and projects could be connected to the grid by the mid-2030s.
Ms Reeves said: 'The UK is back where it belongs, taking the lead in the technologies of tomorrow with Rolls-Royce SMR as the preferred partner for this journey.'
The SMR project could support up to 3,000 new skilled jobs and power the equivalent of around three million homes, with a first site expected to be allocated later this year by state-owned Great British Energy – Nuclear.
Tuesday's announcement of Rolls-Royce as the preferred bidder came after the Government confirmed financial support for Sizewell C.
Energy Secretary Ed Miliband said new nuclear power capacity was needed to deliver a 'golden age of clean energy abundance'.
Trade unions welcomed the Sizewell move, which the Treasury said would go towards creating 10,000 jobs, including 1,500 apprenticeships.
But the head of a campaign group opposing the plant criticised the decision to commit the funding, saying it is still not clear what the total cost will be.
Nuclear plants are seen as increasingly important electricity sources as the Government tries to decarbonise Britain's grid by 2030, replacing fossil fuels with green power.
The last time Britain completed one was in 1987, which was the Sizewell B plant.
Hinkley Point C, in Somerset, is under construction and is expected to produce enough power for about six million homes when it opens, but that may not be until 2031.
The Energy Secretary said: 'We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.
'This is the Government's clean energy mission in action – investing in lower bills and good jobs for energy security.'
It will get the UK off the 'fossil fuel rollercoaster', he separately told The Guardian.
'We know that we're going to have to see electricity demand at least double by 2050. All the expert advice says nuclear has a really important role to play in the energy system.
'In any sensible reckoning, this is essential to get to our clean power and net zero ambitions.'
The joint managing directors of Sizewell C, Julia Pyke and Nigel Cann, said: 'Today marks the start of an exciting new chapter for Sizewell C, the UK's first British-owned nuclear power plant in over 30 years.'
At the peak of construction, Sizewell C is expected to provide 10,000 jobs and the company behind the project has already signed £330 million worth of contracts with local businesses.
The plant, which will power the equivalent of six million homes, is planned to be operational in the 2030s.
The GMB union said giving Sizewell C the go-ahead was 'momentous'.
Regional Secretary Warren Kenny said: 'Nuclear power is essential for clean, affordable, and reliable energy – without new nuclear, there can be no net zero.
'Sizewell C will provide thousands of good, skilled, unionised jobs and we look forward to working closely with the Government and Sizewell C to help secure a greener future for this country's energy sector.'
Alison Downes, of Stop Sizewell C, said ministers had not 'come clean' about the full cost of the project, which the group have previously estimated could be some £40 billion.
She said: 'Where is the benefit for voters in ploughing more money into Sizewell C that could be spent on other priorities, and when the project will add to consumer bills and is guaranteed to be late and overspent just like Hinkley C?'
The Government has also promised £2.5 billion over five years for fusion energy research and £6 billion of investment for the industrial base supporting the Royal Navy's nuclear submarine fleet.