Chancellor Rachel Reeves has allocated £14.2 billion ($19.29 billion) to fund Britain’s first state-backed nuclear power station in nearly four decades, the 3.2-gigawatt Sizewell C in Suffolk, England. Co-owned with EDF Energy Ltd., a subsidiary of French utility EDF, the project will feature two reactors on England’s east coast near the existing Sizewell A and B plants. Expected to be operational in the 2030s, it aims to supply electricity to approximately six million homes.

Chancellor Reeves announced GBP 14.2 billion for Britain's first state-funded nuclear power station in nearly four decades, the 3.2-GW Sizewell C in Suffolk.

The investment is projected to create 10,000 jobs, including 1,500 apprenticeships, and support additional employment across the UK. According to a joint statement from the Treasury and the Department for Energy Security and Net Zero: “The company [Sizewell C] has already signed £330 million in contracts with local companies and will boost supply chains across the UK with 70 percent of contracts predicted to go to 3,500 British suppliers - supporting new jobs in construction, welding, and hospitality.”

Sizewell C is designed to support the UK’s decarbonization goals by providing clean energy, enhancing energy security, and reducing household energy costs. Secretary of State for Energy Ed Miliband: “We need new nuclear to deliver a golden age of clean energy abundance, because that is the only way to protect family finances, take back control of our energy, and tackle the climate crisis.” During a visit to EDF’s Hinkley Point C, Prime Minister Keir Starmer: “I see the future energy mix of this country as… new nuclear, nuclear and mixed with renewables.”

Local opposition, including groups like Together Against Sizewell C and Stop Sizewell C, has raised concerns about the project’s environmental impact on Suffolk’s coast and its higher costs compared to other renewable options. Stop Sizewell C also called for transparency regarding taxpayer funds, noting ongoing private investor negotiations.

The UK has not commissioned a new nuclear plant since 1995, and most of its current nuclear facilities, except Sizewell B, are expected to retire by the early 2030s. The £14.2 billion for Sizewell C is part of a £30 billion nuclear investment outlined in the 2025 Spending Review, which also includes £2.5 billion for small modular reactors (SMRs) developed by Rolls-Royce across three UK sites, £300 million for advanced nuclear fuel production, and £2.5 billion for fusion research, including the STEP program in Nottinghamshire.