Boris Johnson approves funding for Sizewell C
The Prime Minister's greenlit funding for a third reactor in Suffolk
Boris Johnson has greenlit funding for a new multibillion-pound nuclear power station on the Suffolk coast, triggering concerns among some of Liz Truss’s allies that it could limit her economic vision.
Whitehall sources confirmed the Prime Minister and Chancellor Nadhim Zahawi have given the go-ahead for financing for the construction of the Sizewell C.
Private funding will be sought for the project estimated to cost £20-30 billion.
The Government is then set to make a final decision on public investment early next year, with it expected to buy a 20% stake in the plant, costing up to £6 billion.
The scheme is massively controversial in Suffolk, with campaigners concerned about it's impact on wildlife and local infrastructure.
But bosses behind the plant say it'll create thousands of jobs.
Business Secretary Kwasi Kwarteng, who is tipped to be the South West Norfolk MP's chancellor if she wins the Tory leadership race, is said to be “massively” on board with the plan.
But her camp did not appear to be united on the issue, with Chief Secretary to the Treasury Simon Clarke raising concerns with Mr Johnson and Mr Zahawi.
In a letter leaked to the Sunday Times, Mr Clarke suggested that acting now would tie the hands of their successors.
Mr Clarke, who is expected to get a senior Cabinet job if Ms Truss wins, said the costs of Sizewell C are “sufficient to materially affect spending and fiscal choices for an incoming government, especially in the context of wider pressures on the public finances”.
While essentially a caretaker Prime Minister after being forced to resign over a succession of scandals, Mr Johnson previously said he would not be making major decisions before leaving office.
Ms Truss, the frontrunner to replace Mr Johnson on September 5th, has pledged tax cuts, including a reversal of the national insurance hike costing at least £30 billion per year.
But she is under growing pressure to offer further support to the most vulnerable, as experts warn the energy price cap could surpass £6,000 in April in a further painful hike.
Mr Kwarteng, in an article for the Mail On Sunday, promised “help is coming” but insisted it is “entirely reasonable not to detail the exact shape of that support” until later.
He also stressed the need to “crack on with more nuclear power stations” in order to increase Britain’s energy security.
How did campaigners react?
Development consent for Sizewell C was given the go-ahead by Mr Kwarteng in July, but negotiations over the financial investment decision were ongoing.
A Government spokeswoman said: “Nuclear power has a key role to play as we work to reduce our reliance on fossil fuels and exposure to volatile global gas prices.
“Negotiations are still ongoing on Sizewell C and as these are active and commercially sensitive discussions we cannot comment further.”