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The £billions cost of the Sizewell nuclear plan becomes an issue in the fight for the role of Prime Minister

 In a move that has caused great irritation in Team Truss, Nadhim Zahawi, Chancellor of the Exchequer, and Johnson are set to approve the financing of the Sizewell C nuclear plant in Suffolk. It received planning consent last month and the government signalled that it would buy a 20 per cent stake in the project, which is being run by the French company EDF and is expected to cost between £20 billion and £30 billion after inflation. The final investment decision has not been announced.

Simon Clarke, the chief secretary to the Treasury who backs Truss and who sources say will have a “top half of the cabinet job” under her leadership, wrote to Johnson and Zahawi warning that a signoff for Sizewell would compromise the new prime minister’s ability to cut taxes or spend more on the cost of living. In his letter, Clarke wrote:

“The quantum is sufficient to materially affect spending and fiscal choices for an incoming government, especially in the context of wider pressures on the public finances.” While the cost to government is likely
to be about £6 billion, rather than £30 billion, that will give Truss far less room for manoeuvre.

 Times 20th Aug 2022

https://www.thetimes.co.uk/article/liz-truss-plans-for-victory-but-as-prime-minister-the-fight-is-only-just-beginning-9w7qqvwng

August 21, 2022 - Posted by Christina Macpherson | politics, UK