NFLAs believe budget is opportunity to lobby Ministers to ditch Sizewell C

Chancellor Rachel Reeves will be unveiling the contents of her red box when making her Autumn Statement on Wednesday and the UK/Ireland Nuclear Free Local Authorities believes this offers an opportunity to lobby Labour to ditch Sizewell C – if opponents act now.

Though intended to be constructed by French owned nuclear operator EDF Energy, the outgoing Conservative Government squandered £2.5 billion of taxpayers money on preparatory work, and in August 2024, Labour compounded the calumny by announcing a new subsidy scheme that could make up to a further £5.5 billion in public money available to support this unwanted white elephant. Consequently, the project is now 76%-owned by the British Government at a time when Ministers and their advisors still desperately chase private sector investors to back this Suffolk turkey.

There are still many unknowns about the eventual overall cost of Sizewell C. In contrast to the amazing reductions achieved in recent years in the cost of generating electricity through renewables, the delivery cost of nuclear continues to rise. Given that Sizewell C’s predecessor, the identical Hinkley Point C, is being delivered hugely over budget with some estimates that the cost in real terms will be up to £46 billion, it is wholly incredible that this project can be delivered for the £20 billion that Ministers claim.

And Sizewell C presents additional costly challenges. As a consequence of climate change, the coastal location will be increasingly threatened by inundation from an encroaching sea, requiring significant expenditure on coastal defences. Further Suffolk is ‘water stressed’ meaning that there will be increasing competition for fresh water from inhabitants or commercial operators, and Sizewell C has still to secure a guaranteed sustainable potable water supply for its planned 60 years of operation.

Given the circumstances it is unsurprising that few players amongst the financial markets have expressed any interest in taking a stake in the Sizewell doonboggle, and there is still considerable uncertainty when, or even if, the Financial Investment Decision will be made.

Sizewell C also represents a double whammy for electricity consumers. As taxpayers, we are expected to front up to £8 billion in funding, incidentally almost the same in total that Labour has dedicated to Great Britain Energy over the entirely of its five year term in office, but as electricity consumers we will also be expected to reimburse the construction costs through the imposition of an additional levy on bills, derisking the project for the profit-focussed operator. Unsurprisingly, the NFLA Secretary has described this Regulated Asset Base (RAB) model as the ROB for it represents daylight robbery.

The Labour Government has announced that they will establish a new ‘Office of Value for Money’ within the Treasury and the appointment of a Chair is expected imminently. Stop Sizewell C has launched a petition calling for that office holder to prioritise an examination of the financial liability that is Sizewell C.

Although initial feedback from the Treasury to campaigners had indicated that Sizewell C would definitely be examined by the new office holder, officials in recent correspondence have been more ambivalent and a recent written answer by Nuclear Minister Lord Hunt to a House of Lords parliamentary question was opaque and non-committal.

Stop Sizewell C are also asking supporters of their campaign to join them in writing to the Chancellor, Prime Minister and Secretary of State for Energy to cancel Sizewell C.

The NFLAs would urge opponents of Sizewell C to sign the petition:

https://action.stopsizewellc.org/valueformoney

And endorse the letter to senior Ministers, both as priority actions:

https://action.stopsizewellc.org/cancel-sizewellc

Ends://..For more information, please contact NFLA Secretary Richard Outram by email to richard.outram@manchester.gov.uk