US company pulls out of race to build Britain's first mini-nukes
The four companies remaining in the contest were given a deadline of mid-April to make their final bids but The Telegraph understands that Westinghouse did not submit one following a negotiation process.
It means only three finalists remain in the running: Rolls-Royce, GE-Hitachi and Holtec.
Great British Nuclear (GBN), the quango responsible for the SMR programme, was expected to announce two winners this summer with bidders told to prepare to build three to four mini reactors each.
Westinghouse did not deny it had withdrawn on Friday but declined to give its reasons.
One industry source suggested the company had baulked at the commercial offer made by the Government.
GBN previously advertised contracts worth £20bn in total for SMR 'technology partners', a figure that is understood to be based on the assumption two winners would be chosen.
However, The Telegraph revealed in February that the Government is considering awarding a contract to only one company as Rachel Reeves, the Chancellor, looks to make savings in her cross-departmental spending review.
The Chancellor is struggling to balance the books as weak economic growth makes it harder to meet her self-imposed 'fiscal rules' for borrowing.
SMR supporters claim they could be a breakthrough in nuclear power because they would be made predominantly in factories and then assembled on site, cutting building times from around a decade to a few years. In theory this could cut costs – as would-be builders of SMRS have repeatedly promised..
Many politicians have snapped up that bait. When he opened the latest stage of the SMR competition, Mr Miliband said: 'Small modular reactors will support our mission to become a clean energy superpower.'
However, the nuclear industry has a mixed record on bringing in key projects on time and on budget.
The biggest current example is the UK's Hinkley Point C power station in Somerset which EDF originally said would cost under £20bn and be operating by now. Current costs estimates are for a final price approaching £50bn and a start-up after 2030.
There are growing fears that the economics of SMRs could prove even harder to justify – because they have many of the same problems as large reactors – meaning security and waste disposal – but produce far less electricity and so make less money.
On Friday, a GBN spokesman declined to comment on Westinghouse's position as did Westinghouse itself. The UK Energy Department was asked for comment.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
How tourists are weathering geopolitical uncertainty, currency moves and extreme heat
Geopolitics, currency moves and extreme weather are increasingly playing into tourists' considerations for their next vacation and affecting classic holiday destinations. Staple European spots France, Spain and Croatia, for example, have been facing record-breaking heat in recent weeks, which triggered wildfires in some locations. Conflict in the Middle East has meanwhile meant that tourists in nearby Cyprus were able to see missiles and smoke in the sky from the beach. Sluggish economic growth and inflationary fears, largely linked to U.S. President Donald Trump's tariff policies, appear to be making consumers more cautious with their spending. A weaker U.S. dollar has also diminished the currency's purchasing power abroad, with a June report from the European Travel Commission showing that high travel costs, alongside the current global perception of the U.S., have been weighing on voyage plans. "For American travellers, a weaker dollar has fuelled demand for countries where their purchasing power goes further, from parts of Latin America to Southeast Asia. Many are opting for package deals that lock in rates upfront, effectively turning travel planning into a smart financial strategy," Nicholas Smith, holidays digital director at Thomas Cook and the eSky Group online travel agency, told CNBC by email. Travelers also appear to be thinking twice before picking the U.S. as a destination amid political tensions and an increase in reports of tourists being detained or interrogated as they enter or leave the country. Linda Jonczyk, a spokesperson for Europe's largest tour operator TUI, said that there has been "some decline" in bookings for travel to the U.S. Earlier this month, TUI CEO Sebastian Ebel reportedly attributed the pullback to factors including reports of tourists facing border control issues. Elsewhere, Europe remains a key destination, despite challenges. Smith said the British pound to euro conversion rate has remained relatively stable, and the familiarity many tourists have with mainland Europe works in the region's favor. "Greece and Turkey also remain firm favourites, even with seasonal wildfire headlines, thanks to their compelling mix of history, hospitality, and value for money," he said. But, Smith also noted that "Turkey has found itself in a slightly tricky predicament. Inflation has pushed up prices, however as most people book all inclusive, it is somewhat mitigated." Still, there has been a growing trend of consumers swapping heat for cooler destinations as part of so-called "coolcations," Smith said. This includes travelers now turning to countries such as Iceland, Norway and Poland. TUI's Jonczyk meanwhile noted that the company's business is becoming less seasonally focused as it responds to "more of our customers preferring to travel outside the peak summer season as weather patterns especially around the Mediterranean change." According to Thomas Cook's Smith, "holidaymakers in 2025 are factoring in more elements than ever when choosing where to go - from currency movements and visa rules to climate patterns and unique cultural draws." "Travellers are becoming more intentional," he added, noting that tourists are seeking out spots that suit them and their priorities, rather than simply avoiding certain locations. Europe's wildfires are an especially big concern among travelers right now, travel experts said, after heatwaves triggered outbreaks in tourist hotspots including Spain, Portugal and Greece. Flames are still spreading in some locations. Over the weekend, Spanish infrastructure such as roads and train services was impacted, as Madrid deployed military emergency troops to try and constrain the fires, Reuters reported. Fires are also continuing to rage in neighboring Portugal, which last week requested assistance from the European Union and was forced to evacuate residents in some regions. In emailed comments, Portugal's tourism office meanwhile told CNBC that the country "remains a safe, welcoming, and fully operational destination for travelers," and that visitors were being hosted "as planned." Local tourism infrastructure was prepared for challenges like wildfires, they added. Rhys Jones, a travel insurance specialist at GoCompare, told CNBC that the price comparison website has increasingly been receiving inquiries about what how to handle traveling in an area were wildfires raged at one point, or if there's a risk of blazes. "The first thing we recommend doing is checking whether the Foreign Office has deemed your destination safe to travel to," Jones told CNBC by email. "If the Foreign Office says it isn't safe, then it's important you take this advice seriously. If you decide to travel regardless of the warnings and need to claim for something that happens during the trip, your travel insurer could refuse your claim," Jones said. On the flipside, insurers might not pay out if you choose to stay at home despite the Foreign Office saying it is safe to travel and there are no reported issues with flights or accommodation, he added. Jo Rhodes, a travel specialist at U.K. consumer group Which?, echoed this advice. "Holidaymakers should wait until closer to the departure date to see if the holiday can go ahead or what flexible booking options are offered from the tour operator or airline. Travel companies will be prioritising anyone due to depart in the next couple of days," Rhodes told CNBC by email.
Business Insider
2 hours ago
- Business Insider
BP, Shel, CVX: Oil Stocks Give Mixed Reception to Ukraine Peace Hopes as Prices Slide
The prospect of peace in Ukraine hasn't brought much joy to the oil price as it slid in early trading today. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Brent crude futures lost 0.7% to trade at $65.09 per barrel, while West Texas Intermediate futures retreated by 1% to $62.82 a barrel. Peace Summit The drop came after what appeared to be a successful meeting at the White House between President Trump, Ukraine's leader Volodymyr Zelenskyy and a gaggle of European leaders, including British Prime Minister Keir Starmer. In a social media post following the meeting, Trump said he had spoken with Russian president Vladimir Putin and was working to arrange a summit between Putin and Zelenskyy, to be followed by a meeting of all three leaders. An end to the conflict, calming at least one of the main geopolitical crises around the world would be a plus for the global economy. But, it might not be so welcome in the balance between oil supply and demand. That's because a deal could see the lifting of sanctions on Russian crude exports bringing more oil onto the market, at a time when demand is still volatile. 'An outcome which would see a ratcheting down of tensions and remove threats of secondary tariffs or sanctions would see oil drift lower toward our $58 per barrel Q4-25/Q1-26 average target,' said Bart Melek, head of commodity strategy at TD Securities. Stocks React Suvro Sarkar, lead energy analyst at DBS Bank, added: 'Oil prices are largely responding to outcomes of recent meetings between Trump-Putin and Trump-Zelenskyy and while no outright peace deal or ceasefire seems imminent, there has been some progress made and chances of further escalation or intensification of sanctions on Russia from US or Europe may be off the table for now.' All of these key stocks have had a volatile 2025 to date hit by international issues such as Ukraine and Iran, as well as tariff fears. That uncertainty may be down to tempered expectations over whether the current talks will actually lead to an end in hostilities. According to the Wall Street Journal, cryptocurrency-based prediction market, Polymarket, currently points to a 38% chance of a ceasefire, well below the 78% seen in March.
Yahoo
3 hours ago
- Yahoo
Reeves eyes property tax raid on the wealthy
Rachel Reeves is drawing up plans for a fresh raid on homeowners in the Budget as she struggles to balance the books and grow the economy. Treasury officials are expected to push the Chancellor to consider a mansion tax on property sales as well as more radical options including annual levies that would disproportionately hit homeowners in London and the South East. It is understood Ms Reeves has ordered officials to review Britain's complex web of property taxes ahead of the Budget in order to identify ways to boost the economy. Economists have warned that the current system is holding back growth. Improving productivity will form a key plank of Ms Reeves's second Budget and changes to the property tax system are expected to form part of these plans. The International Monetary Fund (IMF) and Institute for Fiscal Studies (IFS) have both called on Ms Reeves to scrap stamp duty on house sales, with the think tank branding the levy Britain's 'worst and most damaging tax'. Experts say the tax discourages people from moving, with a knock-on effect for the broader dynamism of the economy. Sources said any changes would be designed to 'protect revenue', in a clear sign that taxes on higher-value properties will have to rise if the Chancellor does overhaul the system. Property taxes including stamp duty are forecast by the Office for Budget Responsibility (OBR) to raise £15.7bn this year, rising to £26.5bn by the end of the decade. Council tax is forecast to raise £50bn this year. The desire to protect this tax income raises the prospect of the Chancellor introducing new council tax bands on the highest value properties in England, or a more radical recurring property tax on homes valued above a certain amount that could replace stamp and council tax. However, government sources vigorously denied a report in the Guardian that said the Treasury was examining proposals that would see sellers face a new 'national tax' on houses worth more than £500,000 when they sell their home. 'That's definitely not going to happen,' said one source close to the Treasury. Analysis of Land Registry data by Hamptons shows that 50pc of English home sales over £500,000 are currently in London, with a further 26pc in the South East. Treasury officials have pushed previous chancellors to replace stamp duty and council tax with an annual tax on property or land values. Such a move would prompt a political backlash. Margaret Thatcher was forced to shelve a fixed tax to fund council services in the 1990s after Conservative plans for a poll tax sparked riots. Scotland previously considered introducing a land value tax to replace council tax but ultimately moved away from the proposals in favour of higher bands of council tax. Official data suggests increasing council tax on bands F, G and H would hit more than a million homes across England and Wales. Sources close to HMRC also signalled that even simple reforms such as introducing new council tax bands could take more than a year to implement because it would take time for the Valuation Office Agency (VOA) to get up to speed. Sources close to Ms Reeves said she would be looking at property taxes as part of a wider review to boost growth. The Chancellor is under intense pressure amid warnings of a black hole of up to £50bn in public finances. Sir Mel Stride, the Tory shadow chancellor, said it was clear that 'more taxes are coming' under Labour. 'This tax grab would punish families for aspiring to own their own home. Under Labour nothing is safe. Your home, your job, your pension – the Chancellor has all of it in her sights,' he said. 'Rachel Reeves will tax your future to pay for her failure.' Ms Reeves has previously called for reforms to the way Britain taxes property. Writing in 2018, she said: 'Council tax, based on 1991 valuations, is at the very least long overdue a re-evaluation and revision of existing bands – a power which could be devolved to local government to match local needs. 'We should also consider the case for its overhaul and replacement with a property tax, levied on property owners.' A Treasury spokesman said: 'As set out in the Plan for Change, the best way to strengthen public finances is by growing the economy – which is our focus. Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8bn and cut borrowing by £3.4bn 'We are committed to keeping taxes for working people as low as possible, which is why at last autumn's Budget, we protected working people's payslips and kept our promise not to raise the basic, higher or additional rates of Income Tax, employee National Insurance, or VAT.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
