Miliband finally delivers on 2009 promise as Chancellor signs off massive taxpayer investment – but critics warn of ‘HS2 Mark 2’ disaster
In a jaw-dropping display of déjà vu, Ed Miliband has finally secured funding for a nuclear power station he first promised when Gordon Brown was Prime Minister – a staggering FIFTEEN years after he initially identified the site.
Chancellor Rachel Reeves yesterday signed off on a colossal £14.2 billion investment in Sizewell C, bringing the government’s total commitment to an eye-watering £17.8 billion for a project that campaign groups warn could ultimately cost taxpayers £40 billion.
The Energy Secretary, who originally earmarked Sizewell as one of eight potential nuclear sites back in 2009 during his first stint in the role, hailed the move as ushering in a “golden age of clean energy abundance” – conveniently glossing over the decade and a half of delays under successive governments.
Back to the Future: Miliband’s Nuclear Time Warp
In scenes that would make even the most patient investor weep, Miliband yesterday found himself announcing the same project he championed when the iPhone 3GS was cutting-edge technology and David Cameron was still in opposition.
We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis,” declared Miliband, recycling rhetoric from the Brown era.
The irony wasn’t lost on critics who pointed out that had the project been properly funded in 2009, it could have been operational for years by now.
£40 Billion Black Hole?
Campaign group Stop Sizewell C delivered a withering assessment of the funding announcement, with spokesperson Alison Downes warning that ministers still haven’t “come clean” about the project’s true cost.
“Starmer and Reeves have just signed up to HS2 mark 2,” she declared, in a damning comparison to the rail project that has become synonymous with government overspending and delays.
The group estimates the final bill could reach £40 billion – nearly three times the announced funding – and warned that taxpayers will be on the hook for every penny of cost overruns.
“Where is the benefit for voters in ploughing more money into Sizewell C that could be spent on other priorities, and when the project will add to consumer bills and is guaranteed to be late and overspent just like Hinkley C?” Downes demanded.
Sister Project Already Years Late and Billions Over Budget
The warnings carry particular weight given the disastrous track record of Sizewell C’s “sister project” at Hinkley Point C in Somerset.
That plant, originally budgeted at £18 billion and due to open in 2023, is now not expected to be operational until 2031 at the earliest, with costs ballooning to between £31-34 billion at 2015 prices – likely far higher in today’s money.
Despite this catastrophic precedent, the government is pressing ahead with what is essentially a carbon copy of the troubled Somerset project.
China Banned But UK Taxpayers Pick Up The Tab
In a revealing Radio 4 interview, Miliband was forced to confirm that China – which was originally a 20% investor in the project through China General Nuclear Power Group – would be completely banned from any involvement.
The UK government was forced to buy out the Chinese stake for £679 million in 2022 amid security concerns, after CGN was charged by the US government with nuclear espionage in 2016.
Now British taxpayers own a staggering 83.5% of the project, with French energy giant EDF holding just 16.5% – a share that’s expected to shrink even further as the government desperately seeks private investors.
10,000 Jobs… But At What Cost?
Trade unions were predictably jubilant at the announcement, with the GMB calling it “momentous” and highlighting the creation of 10,000 construction jobs and 1,500 apprenticeships.
But critics point out that at £14.2 billion, that works out at £1.42 million per job created – and that’s before any cost overruns.
The plant, which will power the equivalent of six million homes when operational “in the 2030s” (translation: don’t hold your breath), has already signed £330 million worth of contracts with local businesses despite not having reached a final investment decision.
Rolls-Royce Wins Small Reactor Jackpot
In a separate announcement, Rolls-Royce was named as the preferred bidder for the UK’s small modular reactor (SMR) programme, backed by £2.5 billion of taxpayers’ money.
The engineering giant will aim to connect these smaller, supposedly cheaper reactors to the grid by the mid-2030s – though given the nuclear industry’s track record, seasoned observers might want to add a decade to that timeline.
The Nuclear Graveyard
Britain’s nuclear ambitions make for sobering reading. The country opened the world’s first commercial nuclear plant at Sellafield in 1956 but hasn’t completed a new one since Sizewell B in 1987.
All existing nuclear plants except Sizewell B are due to close by the mid-2030s, leaving a massive energy gap that renewable sources alone cannot fill.
Yet despite this urgency, successive governments have dithered for 15 years over Sizewell C, turning what should have been a straightforward infrastructure project into a political football.
Spending Review Shock
The timing of the announcement – coming just days before Reeves‘ spending review on Wednesday – has raised eyebrows across Westminster.
While billions are being found for nuclear ambitions, other government departments are bracing for sweeping cuts as the Chancellor grapples with what Labour claims is a £22 billion black hole in public finances.
The nuclear splurge includes not just Sizewell C and SMRs, but also:
- £2.5 billion over five years for fusion energy research
- £6 billion for the nuclear submarine industrial base
- £300 million for developing non-Russian nuclear fuel supplies
- £420 million for Sheffield Forgemasters to produce nuclear-grade steel
A Final Investment Decision… Eventually
Perhaps most remarkably, despite the fanfare and the £14.2 billion commitment, there’s still no final investment decision on whether Sizewell C will actually go ahead.
That crucial decision has been kicked down the road yet again, with officials now targeting next month’s Anglo-French summit as the moment when private investors might finally be convinced to stump up cash for a project the government itself seems unsure about.
The Bottom Line
As Britain embarks on what Reeves calls “the biggest nuclear building programme in a generation,” taxpayers are entitled to ask why it’s taken 15 years to fund a project first identified when Gordon Brown was in Number 10.
They might also wonder why, having watched Hinkley Point C spiral into delays and cost overruns, the government is doubling down on an identical design at Sizewell.
One thing is certain: if Sizewell C follows its sister project’s trajectory, today’s £14.2 billion announcement will look like pocket change compared to the final bill.
And somewhere in Whitehall, Ed Miliband will still be giving speeches about delivering a “golden age of clean energy abundance” – perhaps by the time he’s back as Energy Secretary for a third stint in 2040.
Image credit: Prime Minister Keir Starmer visits Encirc on CCUS visit (54042493829) by UK Government, OGL 3, via Wikimedia Commons
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