LONDON (BN24) — Britain announced Tuesday it will invest an additional £14.2 billion ($19.25 billion) in the Sizewell C nuclear power plant project in southeast England, while committing more than $8 billion to expand submarine-building capacity as part of a comprehensive spending review defining government priorities over the next four years.
The nuclear investment represents the largest government commitment to atomic energy in a generation, bringing total public funding for the Sizewell C project to £17.8 billion when combined with the £3.6 billion already invested prior to the spending review. Chancellor Rachel Reeves characterized the move as launching “a new era of nuclear power” in Britain during remarks to a trade union conference Tuesday.
The Sizewell C facility, located in Suffolk, is projected to generate approximately 10,000 jobs during peak construction phases and produce sufficient electricity to power around 6 million homes once operational. The plant represents only the second new nuclear facility to be constructed in Britain in more than two decades, following the delayed and cost-overrun plagued Hinkley Point C project.
EDF, the French state-owned energy company developing Sizewell C, initially estimated the project would cost approximately 20 percent less than Hinkley Point C, which has faced multiple delays and is currently expected to begin operations in 2029 with costs ranging between £31-34 billion at 2015 prices.
The British government has not disclosed total projected costs for Sizewell C or provided completion timelines, drawing criticism from opposition groups. “With the continued secrecy about Sizewell C’s total cost, how can voters decide whether the 18 billion pounds pledged to Sizewell C is a good use of their money?” questioned Alison Downes of campaign group Stop Sizewell C.
Government ownership of the project increased significantly after purchasing China’s General Nuclear Power Group stake in 2022 amid security concerns. EDF financial results from February showed the UK government holding an 83.8 percent stake with EDF maintaining 16.2 percent, though EDF’s portion is expected to decrease following Tuesday’s announcement. The project developer indicated in December that five investors were participating in a bidding process.
Simone Rossi, CEO of EDF UK, welcomed the government decision, stating it represents “a vote of confidence in Hinkley Point C, which has re-started the UK nuclear industry and built the experience and skills that will benefit Sizewell C.”
The nuclear investment coincides with substantial defense spending increases, including over £6 billion ($8.13 billion) allocated to submarine building capacity over the four-year spending review period. The defense investment supports major contractors including BAE Systems and Rolls-Royce Submarines, responding to increased security demands and U.S. President Donald Trump’s calls for European nations to assume greater responsibility for regional defense.
Prime Minister Keir Starmer has pledged the largest sustained increase in British defense spending since the Cold War’s conclusion. Last week, Britain announced plans to expand its nuclear-powered attack submarine fleet from seven to as many as 12 vessels, following an independent military capacity review.
The submarine capacity investment encompasses what Reeves described as boosting “capacity, capability and productivity of the UK’s submarine industrial base.” The spending review will also include £4 billion over the next decade for Plymouth naval base improvements and investments in Scottish naval base redevelopment and Sheffield Forgemasters, a steel company producing submarine components.
Britain’s nuclear expansion strategy aims to replace aging power plants while enhancing energy security, meeting climate targets, and creating employment opportunities. The dual investment in nuclear power generation and submarine manufacturing capabilities reflects the government’s commitment to both energy independence and enhanced defense readiness amid evolving global security challenges.
The comprehensive spending announcements form part of Reeves’ first multi-year spending review, with complete results scheduled for release Wednesday, establishing Britain’s strategic priorities across energy and defense sectors for the coming four-year period.
Reuters
