LONDON (Parliament Politics Magazine) – In weeks to come, it is anticipated that government funding for a brand-new, multibillion-pound nuclear power station in Suffolk will be authorised.
If the investment decision in Sizewell C will be taken by the government before the change in the prime minister was unclear, the sources at Whitehall said that it was likely to get the go-ahead.
This financing corresponds to a funding of around £1.7 billion, which is in the ongoing budgets.
The government may invest many more billions in the new facility if the new prime minister approves a final investment decision early in the following year.
Business Secretary Kwasi Kwarteng is reportedly lobbying for the project, and Chancellor Nadhim Zahawi and Boris Johnson are also rumoured to be on board.
In order to strengthen Britain’s energy security, Mr. Kwarteng, who is expected to become chancellor in a Liz Truss administration, wrote in The Mail on Sunday that the government should “crack on with more nuclear power stations.”
However, it appears that Liz Truss’ other allies have voiced worry that making the choice within the next two weeks will constrain the future administration.
The costs of Sizewell C were sufficient to meaningfully alter spending and fiscal options for a new government, especially in the context of the mounting pressures on public finances, Treasury Secretary Simon Clarke wrote in a letter that was leaked to The Sunday Times.
According to government sources, Mr. Clarke was operating in his official capacity as treasury secretary and the next administration will make the final decision over Sizewell C.
Although essentially serving as a caretaker, Mr. Johnson already declared he would not be making any significant choices before leaving the office.
Ms. Truss, who is expected to succeed Mr. Johnson on September 6th, has promised tax cuts, including reversing the national insurance increase that will cost at least £30 billion annually.
But as experts warn that the energy price cap could exceed £6,000 in April in yet another painful spike, she is coming under increasing pressure to provide additional assistance to the most in need.
Sizewell C received approval for development in July, although negotiations over the financial investment decision were still ongoing.
Nuclear power had a critical role to play as they tried to minimise their reliance on fossil fuels and vulnerability to uncertain global gas prices, a government spokesperson said.
Negotiations on Sizewell C are still going on, and they were unable to talk further because they were active and commercially sensitive.
