Government commits £14.2bn to Sizewell C ahead of spending review

The government will commit more than £14.2bn to build a new nuclear plant in Suffolk, the chancellor will announce at a trade union event today.

Speaking at the GMB Congress in Brighton, Rachel Reeves will confirm that funding for Sizewell C is set to be included in the spending review tomorrow (Wednesday).

Reeves said the investment in Sizewell C, alongside plans to invest in a fleet of small modular reactors, marked the “biggest nuclear building programme in a generation”.

No new nuclear plant has opened in the UK since 1995 and all of the existing fleet except Sizewell B are likely to be phased out by the early 2030s.

Sizewell C was one of eight sites identified in 2009 by then-energy secretary Ed Miliband. After more than a decade of slow progress for the project, Miliband, in government once again, is likely to be the secretary of state to finally approve the scheme.

“We will not accept the status quo of failing to invest in the future and energy insecurity for our country,” he 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.”  

If built, Sizewell C would come online in the 2030s, joining the new plant at Hinkley Point C, construction of which has been dogged by delays and budget overruns.

The government claims Sizewell C will provide 10,000 jobs at the peak of construction, while reducing energy bills and enhancing the UK’s energy security.

Opponents say the scheme is too expensive, with rumours of an expected cost of up to £40bn, and that job creation will be short term. They also question the government’s claims regarding energy security, adding that the UK has no domestic source of uranium and that the scheme will be part-owned by EDF, a French state-owned company.

Responding to the government’s announcement, the Stop Sizewell C campaign said there was no mention of a final investment decision and it was unclear whether the £14.2bn promised was in addition to the £6.4bn already spent on the project.

“There still appears to be no final investment decision for Sizewell C but £14.2bn in taxpayers’ funding, a decision we condemn and firmly believe the government will come to regret,” Alison Downes, a spokesperson for the campaign, 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? 

>> Read more: Hinkley Point C: Building Britain’s first nuclear reactor in 30 years

“Ministers have still not come clean about Sizewell C’s cost and, given negotiations with private investors are incomplete, they have signed away all leverage and will be forced to offer generous deals that undermine value for money. [Keir] Starmer and Reeves have just signed up to HS2 mark II.”

According to reports in the Financial Times, a final investment decision for the scheme is likely to coincide with a Franco-British summit next month, where prime minister Starmer will meet President Macron.

Julia Pyke and Nigel Cann, joint managing directors of Sizewell C, 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. 

“It’s a privilege to be leading a project that will create over 10,000 jobs, secure Britain’s energy future and revitalise the UK’s nuclear industry.

“We aim to showcase British infrastructure at its best – delivering a cleaner, more secure energy future for generations to come.”