The Labour government is set to hold fire on pushing through sweeping reforms to nuclear energy due to a legal adviser’s concerns over the “UK’s environmental, trade and human rights obligations”, it has been reported.
The Innovate UK member John Fingleton published a damning report on red tape blocking the expansion of the country’s nuclear industry on Monday.
His extensive report prompted calls from across the political spectrum for Rachel Reeves to accept recommendations easing planning rules and lowering costs for investors.
But ITV News has now reported that the Chancellor will not include the growth-focused recommendations in her Budget speech on Wednesday.
The broadcaster reported that the Chancellor will make reforms “subject to further work and review” after a government adviser voiced concerns about the legal crossovers in the paper with UK obligations.
The landmark report on nuclear energy underscored the need for radical changes to the planning and regulatory system to allow more plants to be built to support the UK’s drive to lead on AI.
Fingleton outlined how £700m was being spent by Hinkley Point C bosses on protecting one salmon every ten years in its “fish disco” project that uses noise to keep animals away from the plant in Somerset.
His report said investors and builders had to deal with a “fragmented” system of environmental or community regulators and red tape to get projects over the line, leading the UK to be the “most expensive” place to build nuclear power.
Labour government urged to back growth
MPs from different parties, growth activists and think tanks have joined up to call for 28 recommendations in the report to be accepted by the Chancellor at the Budget.
A letter signed by Labour Growth Group chair Chris Curtis and groups including the Centre for British Progress, Tony Blair Institute and the YIMBY Alliance said: “Britain has the chance to once again lead the world in building nuclear power, which is the backbone of industrial communities and jobs across the country, and also at the heart of our climate ambitions.
“There is a once in a generation opportunity to build the energy and industrial infrastructure of the future on these islands.”
Reform UK’s Zia Yusuf and the Conservative Party’s Kemi Badenoch also spoke out in support of the review.
Lawrence Newport, the head of campaign group Looking for Growth, told City AM: “Such a significant shift would set Britain on a clear path towards affordable energy and, consequently, economic growth.
Indeed, reducing energy prices is a prerequisite for any government hoping to reverse decades of stagnation and decline. With cheaper energy, British businesses could start and scale here uninhibited.
“Rachel Reeves must make a decision. If the Chancellor really is as serious about growth as she says, if she actually wants to make our energy cheap again, she will accept all of the Nuclear Regulatory Review’s recommendations.”