Keir Starmer set to approve nuclear plant in bid to power up economic growth

Sir Keir Starmer is expected to approve a major nuclear power plant alongside a slew of mini reactors in a bid to boost Britain’s stagnant economy.

The prime minister will approve investment for the construction of the Sizewell C nuclear plant in Suffolk before the June spending review, The Times reported, as well as unveiling plans for a fleet of small modular reactors (SMRs) across the UK.

Sizewell C is expected to be up and running in 2035 and will provide 7 per cent of Britain’s energy demand at a cost of £20 billion.

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But a Department for Energy Security and Net Zero (Desnz) spokesman played down expectations of an announcement before June, saying a final decision “will be taken in the spending review”.

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.

However, 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.

Sizewell C is yet to be signed off by the government.

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A decision on whether to give Sizewell C the green light has formed part of the government’s upcoming spending review, but Sir Keir has been bringing announcements forward in response to Donald Trump’s tariffs.

The PM has been desperately trying to spur on growth amid fears the US president’s trade war will cause Britain’s economy to stagnate and force further cuts in the autumn Budget.

EDF, the French energy giant that owns and runs Britain’s nuclear fleet, and the government, which has committed £6 billion so far, were the first backers of the project.

But they have been trying to raise billions more from prospective investors, including British Gas owner Centrica.

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The government in January was forced to deny reports the expected costs of Sizewell C had spiralled to £40bn due to inflation and the knock-on effects of delays at Hinkley Point C.

Whitehall sources told The Independent the government is hugely supportive of Sizewell C, but that an announcement on its approval and funding would not come before June.

Sources told The Times Sir Keir wants to make a “nuclear moment” by combining the approval of Sizewell C with an announcement on a generation of SMRs.

The government has been running a competition to develop the reactors, which are potentially cheaper, much faster to build and easier to deploy, with Rolls-Royce and GE Hitachi Nuclear Energy the frontrunners.

A Desnz spokesman said: “New nuclear power stations such as Sizewell C will play an important role in helping the UK achieve energy security and net zero, while securing thousands of good, skilled jobs and supporting our energy independence beyond 2030.

“Nuclear power has the potential to boost our supply of secure homegrown power and generate major investment nationwide. The project is making good progress and a final decision on whether to proceed will be taken in the spending review.”