Boris Johnson approves funding for Sizewell C Nuclear Plant

UK PM Boris Johnson has greenlit funding for a new multibillion-pound nuclear power station, triggering concerns among some of Liz Truss's allies that it could limit her economic vision.

Whitehall sources confirmed the Prime Minister and Chancellor Nadhim Zahawi have given the go-ahead for financing for the construction of the Sizewell C nuclear reactor in Suffolk, Vestnik Kavkaza reports.

Private funding will be sought for the project estimated to cost £20-30 billion.

The Government is then set to make a final decision on public investment early next year, with it expected to buy a 20% stake in the plant, costing up to £6 billion.

A Whitehall source said Boris Johnson had taken the decision to press ahead with Sizewell several weeks ago. However, he dismissed the idea that the move would tie the hands of the next prime minister, following reports that the Truss campaign was worried that it was irreversible.

“In the next few weeks, we will announce a government investment decision on Sizewell C where the government formally commits to the project’s financing. It allows the project to raise private capital in the markets. But it’s only at the point of the final investment decision in early 2023 that the government would formalise any equity share.”

Johnson’s government has already put up £100m of funding this year to support the development of Sizewell C.