UK Plans £16.7 Billion in Nuclear Power in Activation of Fossil Fuel Phase-Out
The United Kingdom is set to commit £16.7 billion (approximately $22.5 billion) to new nuclear energy projects, Chancellor Rachel Reeves has announced.
The investment marks one of the largest state-backed expansions of nuclear power in British history and forms a core part of the government’s long-term strategy for energy security and decarbonization.
The announcement, reported by the news media via its official X (formerly Twitter) account, reflects a significant policy shift aimed at securing the UK’s energy future through a mix of large-scale nuclear projects and emerging small modular reactor (SMR) technology.
“This is a pivotal moment for Britain’s energy landscape. By investing in nuclear power, we are investing in clean, homegrown energy that can power our homes and industries while cutting emissions,” Reeves said.
The UK government has repeatedly identified nuclear energy as a critical component of its plan to achieve net-zero carbon emissions by 2050. Nuclear power offers a stable, low-carbon energy source that can complement intermittent renewables like wind and solar.
Part of the £16.7 billion will be directed toward the long-anticipated Sizewell C nuclear power station, a large-scale project on the Suffolk coast expected to power up to six million homes once completed. Other funds will support development and deployment of small modular reactors (SMRs), a new generation of compact reactors that can be manufactured in factories and deployed more flexibly than traditional plants.
Among the frontrunners in SMR development is Rolls-Royce, which was recently selected by the government to lead a significant SMR deployment initiative across the UK.
The funding announcement is not only about energy generation—it also signals a broader economic strategy. Government officials argue that expanding the UK’s nuclear infrastructure will generate tens of thousands of high-skill jobs, spur innovation in advanced manufacturing, and bolster domestic supply chains.
The nuclear investment also positions the UK to reduce its reliance on imported fossil fuels, a vulnerability exposed during recent global energy crises.
“This is about national resilience as much as it is about the climate,” a Treasury spokesperson said. “The more energy we can generate at home, the less exposed we are to international price shocks and supply risks.”
While the plan has been welcomed by many in the energy and industry sectors, some environmental groups have expressed caution.
Critics point to the long build times and high upfront costs associated with nuclear projects, as well as unresolved questions around nuclear waste disposal.
Still, experts argue that nuclear must be part of the mix if the UK is to meet its carbon reduction targets and maintain a reliable energy grid in the coming decades.
Internationally, the UK’s nuclear expansion is being watched closely by other countries considering similar paths.
As Europe and other regions grapple with the dual demands of decarbonization and energy security, Britain’s strategy could serve as a model for how to integrate traditional infrastructure with emerging clean technologies.
Chancellor Reeves is expected to include the nuclear investment in her broader fiscal plans to be presented in Parliament later this month.
The government will also outline timelines for reactor construction, regulatory approvals, and public-private partnerships to deliver the projects.
If fully implemented, this initiative could see Britain re-emerge as a global leader in nuclear innovation—something not seen since the heyday of the country’s atomic energy program in the mid-20th century.
