The Labour government is hitting pause on a major overhaul of the UK's nuclear energy strategy, following critical legal advice concerning the nation's international obligations.
Legal Advice Halts Nuclear Push
Chancellor Rachel Reeves will not include sweeping recommendations from a landmark nuclear report in her upcoming Budget speech on Wednesday. This decision comes after a government legal adviser raised significant concerns about potential conflicts with the UK's environmental, trade, and human rights obligations.
The report in question, published by Innovate UK member John Fingleton on Monday, delivered a damning indictment of the red tape stifling the country's nuclear industry. It prompted cross-party calls for the Chancellor to adopt its 28 growth-focused recommendations, which aimed to ease planning rules and lower costs for investors.
The 'Fish Disco' and a Fragmented System
Fingleton's review highlighted the extreme costs and bureaucratic hurdles facing nuclear projects. In a striking example, it revealed that £700m is being spent by Hinkley Point C on a so-called 'fish disco' project in Somerset. This initiative uses underwater noise to protect salmon, averaging a cost of one salmon protected every ten years.
The report concluded that the UK's fragmented system of environmental and community regulators makes Britain the most expensive place in the world to build nuclear power. This, it argued, severely hampers the UK's ability to build the new plants needed to support its ambition to become a leader in Artificial Intelligence.
Cross-Party Pressure for Growth
The decision to delay has drawn criticism from a broad coalition. MPs from different parties, growth activists, and leading think tanks have united to urge the Chancellor to accept the report's proposals.
A joint letter signed by the Labour Growth Group, the Centre for British Progress, the Tony Blair Institute, and the YIMBY Alliance called it a once in a generation opportunity to build future energy infrastructure and create jobs. Notably, Reform UK's Zia Yusuf and Conservative MP Kemi Badenoch have also voiced support for the review.
Lawrence Newport from the campaign group Looking for Growth told City AM that accepting the recommendations was a prerequisite for affordable energy and reversing economic decline. He stated that Rachel Reeves must make a decision that proves her seriousness about growth.
Instead of immediate action, the Chancellor is expected to make the proposed reforms subject to further work and review, leaving the future of the UK's nuclear expansion and the potential savings from cutting red tape in a state of uncertainty.
