Whitehall sources have confirmed the Prime Minister and Chancellor Nadhim Zahawi have given the go-ahead for the financing of the construction of the Sizewell C nuclear reactor in Suffolk.
The UK government is expected to buy a 20 per cent stake in the plant for £6bn and seek private funding to finance the remaining cost of the project, estimated at £20-30bn, although a final decision on the figures will be made early next year.
The project, mainly funded by the French energy company EDF, aims to generate about 7 per cent of the UK's electricity needs and operate for 60 years. The new plant would be built next to the existing Sizewell B, which is still generating electricity, and Sizewell A, which has been decommissioned, according to Business Secretary Kwasi Kwarteng. To date, the government has committed £100m to develop the project.
The recent announcement contradicts Boris Johnson's statements that he would not be making any major decisions...