Rachel Reeves has approved £14.2 billion in funding to support construction of the new Sizewell C nuclear power station, as part of her first major spending review.
The investment will be confirmed by the chancellor at the GMB union’s annual congress on Tuesday, in a move aimed at boosting the UK’s energy security and cutting carbon emissions.
Energy secretary Ed Miliband said the new plant was central to delivering a “golden age of clean energy abundance” and reducing reliance on fossil fuels.
Trade unions welcomed the move, which the Treasury said would go towards creating 10,000 jobs, including 1,500 apprenticeships.
But campaigners criticised the move, warning that the full cost of the development remains unclear and could far exceed the initial investment.
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.”
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 government is also due to confirm one of Europe’s first small modular reactor programmes and will invest £2.5 billion over five years in fusion energy research as part of plans to boost the UK’s nuclear industry.
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.”
However, 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.
“There still appears to be no final investment decision for Sizewell C, but £14.2 billion in taxpayers’ funding, a decision we condemn and firmly believe the government will come to regret,” 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?
“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. Starmer and Reeves have just signed up to HS2 mark 2.”
