Autumn Statement: Government to push ahead with plans for Sizewell C

The site for Sizewell C, near existing nuclear power plant buildings on the Suffolk coast

The chancellor has reaffirmed the government's backing for a Sizewell C nuclear plant in his Autumn Statement.

Jeremy Hunt said the £20bn project was the "only one way to stop being at the mercy of international gas prices".

Energy firm EDF had said the new plant would generate about 7% of the UK's electricity needs.

However, Stop Sizewell C campaigners said the proposed plant's "ultimate cost and technical reliability are very uncertain".

The former prime minister, Boris Johnson, gave the go-ahead for the power plant in July, against the advice of the Planning Inspectorate.

Sizewell C, on the right, would be built next to Sizewell B, centre, which is still generating, and Sizewell A, far left, which is being decommissioned

New large-scale nuclear plants have been a key part of a government strategy to help reduce the UK's reliance on fossil fuels and Mr Johnson previously declared it was his intention to build eight new reactors in the next eight years.

While campaigning for the Conservative leadership in the summer, Prime Minister Rishi Sunak also pledged to uphold Mr Johnson's plans.

• What is Sizewell C and where will it be?

In his Autumn Statement, Mr Hunt said that while "Britain is a global leader in renewable energy" he insisted that "we need to go further, with a major acceleration of home-grown technologies like offshore wind, carbon capture and storage, and, above all, nuclear".

He said the project will "deliver new jobs, industries, and export opportunities and secure the clean, affordable energy we need to power our future economy and reach net zero by 2050.

"Subject to final government approvals, the contracts for the initial investment will be signed with relevant parties, including EDF, in the coming weeks, it will create 10,000 highly skilled jobs and provide reliable, low-carbon, power to the equivalent of six million homes for over 50 years.

"Our £700m investment is the first state backing for a nuclear project in over 30 years and represents the biggest step in our journey to energy independence."

A spokeswoman for the Sizewell C project said it was "delighted" with the chancellor's message and said it would "look forward to concluding negotiations in the coming weeks".

"Progressing the project will deliver thousands of rewarding jobs for local people and a massive boost for skills and the supply chain in the region," she said.

"Suffolk has shown its support with 61% in favour of Sizewell C and with government support our work can continue to deliver on our commitments to the county."

An outstanding final decision on further investment would be made in the next 12 to 18 months, EDF said.

Sizewell C would be built just south of RSPB Minsmere

The Nuclear Industry Association (NIA) said it was a "huge moment" for the project.

Chief executive, Tom Greatrex, said: "Sizewell C will be one of the UK's most important green infrastructure projects ever, and critical to the government's commitment to strengthen energy independence, cut gas use and bring down bills."

He said the NIA was "looking forward to Sizewell C contracts being signed in the next few weeks".

Mr Greatrex added that the announcement also "paved the way for the development of a pipeline of new nuclear projects" and the UK now needed to "urgently get on with building new nuclear plants alongside renewables to meet the targets set out in the Energy Security Strategy".

'Wrong project'

Sue Ferns, from the engineering union Prospect, welcomed the chancellor's statement but said "merely restating previous announcements is not enough".

"When are we going to get confirmation of the government investment decision?" she said.

"Potential investors are seeking assurances now and without their commitment, dependent on a firm decision from the government, the project risks being holed below the waterline."

Campaign group, Stop Sizewell C, said that if the chancellor is "looking for cheap, reliable, energy independence, he is backing the wrong project".

"Sizewell C's ultimate cost and technical reliability are very uncertain and building it is reliant on French state-owned EDF," a statement said.

"Greenlighting Sizewell C also loads more tax onto struggling households, who would be forced to pay a nuclear levy on bills for a decade before they could light a single lightbulb."

It added that the group would "keep fighting this huge black hole for taxpayers' money, when there are cheaper, quicker ways to get to net zero".

Another campaign group, Together Against Sizewell C, said the government's "myopic pursuit of nuclear power at any cost" had been borne out by not using the chancellor's autumn statement to cancel the project.

In a statement, it said: "The government's own impact assessment shows that they consider Sizewell C could take up to 17 years from the date of the final investment decision to when Sizewell C might be operational - far too late to provide the rapid decarbonisation or electricity required."

"In reality, Sizewell C will leave ever-increasing debts to many generations as they have to deal with legacy waste amid rising temperatures, sea levels and Black Swan [unexpected] events."

Earlier this month, the government denied that plans for the new power plant were under review.