Chancellor reclassifies nuclear power as ‘environmentally sustainable’

Nuclear energy is to be reclassified as “environmentally sustainable” to give it the same access to investment incentives as renewables, the Chancellor confirmed in his speech to the House of Commons.
By Greg Wright
Published 15th Mar 2023, 15:45 BST

In his Spring Budget, Jeremy Hunt said the Government will launch a Great British Nuclear scheme to “bring down costs” and “provide opportunities” in the supply chain with a view to nuclear power providing 25 per cent of the UK’s electricity generation by 2050.

He also launched a competition for small modular reactors (SMRs), which will be funded if the technology is proven to be viable, and he reiterated an announcement made in the autumn to invest £700m in Sizewell C nuclear power station planned in Suffolk.

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Mr Hunt also said that he wants to invest up to £20bn to help develop carbon capture usage and storage (CCUS) technologies. These are designed to suck up carbon from the emissions from major polluting industries, such as the steel, glass or power. However, none of the new money for CCUS that Mr Hunt has promised will come before the next election, after which he may no longer be Chancellor. He said that he hopes that the money can help a sector which he said could support up to 50,000 jobs.

Chancellor of the Exchequer Jeremy Hunt leaves 11 Downing Street, London, with his ministerial box before delivering his Budget at the Houses of Parliament. Picture: PA