Downing Street has denied that the plan for a new nuclear power plant at Sizewell C in Suffolk is under review as part of Jeremy Hunt’s bid to fill a hole in the government’s finances.
Reports that the £30bn nuclear facility could be scrapped or delayed sparked alarm, with unions warning that ditching Sizewell would scupper the UK’s hopes of achieving net-zero carbon emissions.
Doubts over the future of the project – expected to supply up to 7 per cent of the UK’s electricity needs – were sparked by a BBC report quoting a goverment source as saying: “We are reviewing every major project – including Sizewell C.”
But prime minister Rishi Sunak’s official spokesperson today said there was no review of Sizewell C and negotiations with energy giant EDF were ongoing.
Asked if Sizewell C was being scrapped, the spokesperson said simply: “No. It’s not accurate to say we are scrapping it.”
He added: “Our position on Sizewell C has not changed. It is crucial to reducing our reliance on fossil fuels, increasing our energy security and meeting net zero emissions.
“We hope to get a deal over the line as soon as possible. Talks are ongoing and negotiations have been constructive.”
Mr Hunt is due to announce a raft of spending cuts and tax rises in his 17 November Autumn Statement as he fights to balance the government’s books following Liz Truss’s disastrous mini-Budget.
Government sources have indicated that everything is on the table as Mr Hunt and prime minister Rishi Sunak prepare the crucial statement, which follows Thursday’s Bank of England warning that the UK is heading into the longest recession for a century.
Business secretary Grant Shapps confirmed today that the Northern Powerhouse Rail project wil not go ahead.
The scheme for a high-speed link between Liverpool and Hull, with a stop at Bradford was briefly resurrected by Ms Truss, after being scaled back by Boris Johnson to an upgrade of existing lines.
But Mr Shapps said there “wasn’t really much point” in committing to the 20-year construction project, involving blasting tunnels through the Pennines, when speed and capacity could be improved on the existing line.
Ministers have not denied that Sunak and Hunt are also looking at breaking the link between inflation and rises in the state pension and welfare benefits. And reports suggest they are also mulling an increase in capital gains tax to bring in more money.
Downing Street’s decision to break their code of silence over the contents of the Autumn Statement appears to be an effort to avoid disrupting delicate negotiations with EDF.
The 3.2-gigawatt plant is expected to power 6 million homes for 60 years as part of a government plan to triple nuclear capacity by 2050. In his final days at No 10, Mr Johnson promised to invest £700 million in the project, which he hopes will form a lasting part of his legacy as PM..
Former Bank of England governor Mark Carney warned that cancelling Sizewell would blow a hole in the government’s legally-binding target to achieve net-zero carbon emissions by 2050.
Mr Carney, who is financial adviser to the UK’s presidency of the COP26 climate change talks, told BBC Radio 4’s Today: “Let’s put it this way. If they’re not going to finance a new nuclear power plant, they have to answer what else they’re going to do for zero-emission so-called baseload energy, to meet the needs of the UK economy in the future.”
The national secretary of the GMB union, Andy Prendergast said any decision to pull support from Sizewell would be “catastrophic”.
“We really could see the UK’s lights go out,” he said. “Without new nuclear there can be no net zero.”
