Government makes another £5.5bn available for Sizewell C in Suffolk

The government has announced a new scheme which will unlock billion of pounds to support building the Sizewell C nuclear power station.

The project on the Suffolk coast, which is said to create 10,000 jobs, was given the go-ahead by the chancellor in November 2022.

Preparation work has already started, such as building roads, fencing and accommodation around it.

The Department for Energy Security and Net Zero (DESNZ) has announced a new nuclear power subsidy scheme.

The money is for "development expenditure" including enabling works at Sizewell C before a "final investment decision", when the project's backers decide whether or not to press ahead with it.

But campaigners opposed to the plant have accused Labour of "proposing to dig still further" into a reported £22bn "black hole" in the public finances.

A DESNZ spokesperson said: "We are committed to Sizewell C, which 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.

"Subject to all the relevant approvals we aim to reach a final investment decision before the end of the year, and we have established a new subsidy scheme of up to £5.5bn to provide certainty and ensure the project has access to the necessary financial support to remain on track.

"Any investment from the scheme will be subject to approvals and in line with the project's spending plans, as agreed by the government and its co-shareholders."

Labour vowed to back the project in its election-winning manifesto, saying Sizewell C along with other nuclear developments would "play an important role in helping the UK achieve energy security and clean power while securing thousands of good, skilled jobs".

But the scheme's opponents have claimed the project will be "slow" to build, destroy the protected landscape and damage the tourism economy along Suffolk's coast.

A Stop Sizewell C spokesperson said: "At a time when the overarching message from the Labour government is that there is no money, this is an extraordinary statement.

"Sizewell C has already chewed through £2.5bn, and now we learn that there is the potential for a staggering £5.5bn more of our taxpayers' money to be thrown at this white elephant.

"Labour complained about a black hole in the country's finances yet now they are proposing to dig still further. Where would this cash come from?"

Chancellor Rachel Reeves warned of a £22bn "black hole" left by the previous Conservative government after an audit of the public finances in July.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know