Business leaders have welcomed the government’s historic decision to go ahead with the £18bn Hinkley Point C nuclear power station, saying it will create a huge economic boost for the West of England and lead to thousands of new jobs.
The final decision after years of delays – and a further pause of several weeks while new Prime Minister Theresa May called for further safeguards over security – means French energy giant EDF can press ahead with its huge building programme at the site in Somerset.
Greg Clark, secretary of state for business, energy and industrial strategy,said the government had imposed “significant new safeguards” for future projects – one of the stumbling blocks of Hinkley C.
During the building, the gross value to the regional economy is estimated to be more than £200m for each year of core construction.
Overall, around 25 000 job opportunities over the construction period and some 900 operational jobs will be created during the 60 years that Hinkley C is due to supply electricity, the new analysis shows.
More than 3,000 Somerset and South West businesses have already registered their interest on Hinkley C’s supplier database.
Last month Business West, the region’s largest business organisation, threw down the gauntlet to the government over its delay in giving the go-ahead the project.
In a strongly worded statement, managing director Phil Smith said any further delay would be a blow to the regional economy precisely at a time, following the EU referendum result, when it needed stability.
Business West runs Bath Chamber of Commerce and also operates the Industry Network for Nuclear South West.
Mr Smith called the yesterday’s announcement a “tremendous decision for the region and the country as a whole”.
He said: “We are delighted that the government has heeded our calls to make a decision quickly and the outcome is the right one. The country needs new, stable, energy production and nuclear power should be part of an energy mix that also includes other low carbon solutions.
“This will be a great boost for businesses in the region, whether they are in the nuclear supply chain or not. There will be opportunities to join the industry by winning work on Hinkley Point C, and even businesses that aren’t related will see positive knock-on effects from the increased investment.
“Through our work with Nuclear South West, and our partnership with the Somerset Energy Innovation Centre, we have been supporting businesses that want to take advantage of the opportunities Hinkley Point C will provide.
“Although large scale infrastructure programmes are always difficult to get off the ground, businesses will be looking to Theresa May and Greg Clark to take more big decisions on critical projects like railways and broadband schemes which are vital to the success of their industrial strategy.”
Chair of the West of England Local Enterprise Parrtnership (LEP) Stephen Robertson – who is also a partner in Nuclear South West – added: “This is tremendous news for jobs and skills- the £18bn investment is set to create 25,000 new jobs and consolidate our position as the UK’s leading area for the nuclear sector.
“We have been working with local partners to gear up the supply chain to maximise opportunities for as many people and business as possible.
“Hinkley Point C marks only the beginning of a rolling programme of investment in nuclear power in the South West, this includes Oldbury, South Gloucestershire, once again showing that the West of England really is the home of knowledge, innovation and quality of life.”
Invest Bristol & Bath head of inward investment Matthew Cross said the announcement shone a spotlight on the strength of Bristol & Bath’s expertise in nuclear technology.
“The region already employs over 170 companies in the sector employing in excess of 27,000 people,” he said.
“As three of the four nuclear developers are already based in the region, we are already a centre of nuclear excellence. Even without Hinkley C, the region has the potential to benefit from up to £30bn worth of investment over the next 20 years.
“However, Hinkley C will reinforce this opportunity and will add an additional £18bn worth of investment potential.”
CBI deputy director-general Josh Hardie said: “The final green light for Hinkley Point is good news for the UK’s energy future as well as supporting jobs and growth across the South West and the country.
“New nuclear energy will play an important role in supporting a diverse, low-carbon and secure energy supply, so it’s now time to push on with this key project.”
Business, energy and industrial strategy secretary Greg Clark said: “Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the government’s agreement.
“Consequently, we have decided to proceed with the first new nuclear power station for a generation.
“Britain needs to upgrade its supplies of energy, and we have always been clear that nuclear is an important part of ensuring our future low-carbon energy security.”
Trade unions also welcomed the decision. Unite national officer for energy Kevin Coyne said: “Our members are shovel ready and dead keen to start work on the country’s first nuclear power station for a generation.
“It means that the lights will remain on in the UK in the decades ahead and it heralds an economic renaissance for the West Country, with the accompanying creation of thousands of skilled jobs and the positive ripple effects to the supply chain across the UK.”
The GMB said the news would be a “big relief to the 25,000 quality jobs” involved in the project.
Last year Business West launched a project to help local firms benefit from the development of Hinkley Point C and make the area a centre of excellence for the nuclear industry.
Nuclear South West brings together firms already operating in the sector with academics and other businesses to maximise opportunities linked to the project – offering a once-in-a-generation chance for local firms.
The decision to build the new plant has been slammed by environmental groups, the Green Party and renewable energy firms. Critics of the deal have also warned of escalating costs and the implications of nuclear power plants being built in the UK by foreign governments. The new plant is being financed by the French and the Chinese.
France’s EDF is funding two-thirds of the project, with China investing the remaining £6bn.
