Since entering government, the Labour Party has demonstrated a laser focus on delivering its mission of 100 per cent clean power by 2030, reforming planning laws for onshore wind, raising the CfD AR6 budget, and introducing legislation to establish Great British Energy (GBE). With the UK’s future nuclear reactors, including Hinkley Point C, only due to come online in the 2030s, nuclear energy does not fit neatly into Labour’s clean power mission. This raises an important question about Labour’s agenda: will the Party pursue nuclear energy with the same level of ambition that it is demonstrating for other technologies? Below, the Brevia Nuclear team explores some of the key areas where Labour could provide greater certainty to the nuclear sector.
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What is the future of Great British Nuclear (GBN) and the Small Modular Reactor (SMR) Programme?
The Energy Secretary Ed Miliband MP has inherited the previous Government’s SMR competition, led by GBN. With six bidders shortlisted for the competition, including the UK’s domestic nuclear champion Rolls-Royce SMR, it is expected that the Government will announce successful bidders later this year, taking two SMRs through to Final Investment Decision (FID) by 2029.
Whilst Labour has recognised the importance of SMRs, the role of GBN in supporting this technology has been complicated by the launch of GBE, which Labour has indicated will absorb the functions of GBN.[1] GBE’s Founding Statement confirmed that the Government is ‘determined to advance the work of GBN’, and that it is ‘exploring how GBE and GBN can best work together, including considering how GBN functions can be aligned with GBE’.[2] There is still very little detail however on what role Labour sees for GBN beyond the SMR competition, whether any of GBE’s £8.3bn budget will realistically be invested in nuclear, or whether Government will allocate any additional funding to growing the UK’s nuclear generation capacity.
Can the Government deliver a timely FID on Sizewell C?
Due to the General Election, the previous Government missed its objective to reach FID on Sizewell C before the end of the last Parliament. Despite the introduction of the Regulated Asset Base financing model and a commitment of £1.19bn of public funding, the project has failed to attract private investment.[3]
With Sizewell C estimated to bring £4.4bn of investment to the East of England during construction, the Energy Secretary will now face pressure to get this project over the line, unlocking 3.2 GW of clean energy capacity and thousands of jobs. Whilst this project will not contribute to Labour’s 2030 target, industry must emphasise the economic benefits of Sizewell C as a project that will support the delivery of Labour’s first mission: securing the highest sustained growth in the G7.[4]
What is the state of the Civil Nuclear Roadmap?
In January 2024, Rishi Sunak’s Government published a Civil Nuclear Roadmap, which set out a path to deliver another large-scale reactor beyond Sizewell C, secure investment decisions for 3-7GW every five years from 2030 to 2044, and meet an overall target of 24GW of nuclear generation capacity by 2050.[5] The Roadmap was welcomed by industry for taking clear steps to support the financing of new-build reactors, remove planning and regulatory barriers, and simplify the siting process.[6]
Labour has not yet set targets for nuclear as it has for solar, wind, and hydrogen.[7] As an industry that relies on long-term certainty to build its supply chains and maintain investor confidence, the nuclear sector must seek clarity from Labour on whether it intends to adopt the previous Government’s ambitious targets and initiatives, or take a more modest approach to growing the UK’s nuclear capacity.
Conclusion
With nuclear projects unlikely to contribute to Labour’s 2030 clean power mission, industry must make the case for investing in nuclear energy as a means to boost economic growth, create high-quality jobs across all regions of the UK, and deliver on the UK’s 2050 net zero target. Whether Labour will double down on nuclear investments or direct its focus towards other technologies remains an open question. What is clear, however, is that the Party’s thinking on nuclear is not set in stone and can be positively influenced. Industry must now push for greater clarity and direction on Labour’s nuclear policy, providing certainty to companies across all parts of the nuclear supply chain.
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Notes
[1] The Labour Party, ‘Make Britain A Clean Energy Superpower’, 19 June 2023, Link
[2] Department for Energy Security and Net Zero, ‘Great British Energy Founding Statement’, 25 July 2024, Link
[3] Department for Energy Security and Net Zero, ‘New steps will speed up Sizewell C preparations’, 29 August 2023, Link
[4] The Labour Party, ‘Secure The Highest Sustained Growth In The G7’, 27 February 2023, Link
[5] Department for Energy Security and Net Zero, ‘Civil nuclear: roadmap to 2050’, 11 January 2024, Link
[6] Nuclear Industry Association, ‘NIA reaction to Government’s publication of the Nuclear Roadmap’, 11 January 2024, Link
[7] The Labour Party, ‘Labour Party Manifesto 2024: Our plan to change Britain’, 13 June 2024, Link
