The UK government's plan to limit its spending overall includes a review of the project to build the Sizewell C nuclear power plant in Suffolk.
The new reactor, located in principle 30 miles northeast of Ipswich, was expected to be built by French energy firm EDF. The government had pledged to support the project by buying a 20 per cent stake in the reactor for £700m, as part of its target of achieving UK energy security in the midst of an energy crisis.
The total cost of the Sizewell C project could be around £20bn, according to reports.
“We are reviewing every major project – including Sizewell C,” a government official told the BBC.
The statement was backed by a senior Treasury source, stressing “we’re looking at all capital spending”.
Although the project could support the UK's future position within the energy market, the Institute for Fiscal Studies' warning that the state faces a roughly £60bn financial black-hole has led the UK government...