Labour announce plans to build £38bn Sizewell C nuclear plant
Energy secretary Ed Miliband has signed off on the final investment decision for the development, with the UK government investing a 44.9 per cent stake.
New Sizewell C investors include La Caisse with 20 per cent, Centrica with 15 per cent, and Amber Infrastructure with an initial 7.6 per cent.
It comes alongside French energy giant EDF announcing earlier this month it was taking a 12.5 per cent stake – lower than its previously stated 16.2 per cent ownership.
A general view of main generator 1, at the Sizewell nuclear power plant in Suffolk (James Manning/PA) (PA Archive)
The nuclear plant is expected to deliver clean power to the equivalent of six million homes and help save £2bn a year in electricity savings once operational.
Rachel Reeves, the chancellor, said the multibillion-pound investment was 'a powerful endorsement of the UK as the best place to do business and as a global hub for nuclear energy'.
'Delivering next generation, publicly owned clean power is vital to our energy security and growth, which is why we backed Sizewell C. This investment will create thousands of good quality jobs and boost the local economy as we deliver on our plan for change,' she said.
She later said that the Sizewell C announcement would reduce the UK's reliance on 'foreign dictators' for energy.
'This is something that politicians have spoken about for years and today we are actually delivering,' she told reporters.
'This is a public-private consortium. We as a Government are putting in money but that means that government – taxpayers – will get a return on that investment.
The government's statement said the deal ended an 'era of dithering and delay' to give Sizewell C the go-ahead, which will support 10,000 jobs once operational.
Mr Miliband said: 'It is time to do big things and build big projects in this country again- and today we announce an investment that will provide clean, homegrown power to millions of homes for generations to come.
'This government is making the investment needed to deliver a new golden age of nuclear, so we can end delays and free us from the ravages of the global fossil fuel markets to bring bills down for good.'
Chris O'Shea, Centrica's chief executive, said Sizewell C was a 'compelling investment for our shareholders and the country as a whole'.
'This isn't just an investment in a new power station – it's an investment in Britain's energy independence, our net zero journey, and thousands of high-quality jobs across the country,' he added.
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The Dax in Frankfurt surged by 0.9pc to 24,469.30 while the Cac 40 in Paris gained 0.4pc to 7,879.98. 08:10 AM BST Trump: Countries faces tariffs of 15pc to 50pc Donald Trump said countries in trade talks with the US would be hit with tariffs ranging from 15pc to 50pc. The US president told at AI summit in Washington: 'We'll have a straight, simple tariff of anywhere between 15pc and 50pc. 'A couple of — we have 50 because we haven't been getting along with those countries too well.' 08:04 AM BST UK stocks jump amid US trade deal optimism The FTSE 100 rose at the start of trading amid optimism that the European Union and US are nearing a deal for 15pc tariffs on goods from the bloc. The UK's flagship stock index climbed 0.4pc to 9,088.41 while the mid-cap FTSE 250 gained 0.1pc to 22,042.59. 07:57 AM BST European Central Bank expected to hold interest rates The European Central Bank is expected to announce that it will keep interest rates on hold later today. The ECB has halved its policy rate from a record 4pc to 2pc in the space of just one year after taming a surge in prices that followed the end of the pandemic and Russia's invasion of Ukraine. The hold would pause seven straight cuts as it waits for the fog surrounding Europe's trade relations with the United States to clear. With inflation now back at its 2pc goal and expected to stay there, eurozone central bankers are expected to instead observe what kind of tariffs Donald Trump imposes on the European Union. 07:43 AM BST Trump to visit Fed as he ramps up pressure for interest rate cuts Donald Trump will visit the US Federal Reserve later as he ramps up pressure on its chair Jerome Powell to cut interest rates. The US president has lambasted the head of the US central bank for being 'too late' to reduce borrowing costs, calling him a 'numbskull' on Tuesday and musing publicly about firing him. Mr Trump has said higher interest rates are costing the US economy billions of dollars. The US central bank held interest rates steady this year as policymakers monitored the effects of Mr Trump's tariff campaign on inflation. The White House announced the surprise visit from Mr Trump but gave no further details. It is not clear if Mr Trump will meet Mr Powell, who he nominated as Fed chair during his first term in office. It comes weeks after officials accused the Fed of mismanaging the $2.5bn renovation of two historic buildings in Washington, DC. 07:37 AM BST Brussels heads towards 15pc US tariff rate The European Union is on course to agree a trade deal resulting in a 15pc tariff on exports to the US, diplomats said. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan, officials said in a brief to EU envoys on the talks. Under the outlines of the potential deal, the 15pc rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5pc, Reuters reported. There could also be concessions for sectors like aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, the diplomats said. 07:31 AM BST Good morning European stocks were on track to surge at the start of trading amid hopes for an EU-US trade deal. France's Cac 40 was up 1.6pc in premarket trading while Germany's Dax gained 1.3pc after diplomatic sources told the Telegraph that Brussels is close to agreeing a trade deal that will slap 15pc tariffs on American imports of EU goods, similar to the deal with Japan. This would avoid a 30pc tariff threatened by Donald Trump in a letter to the European Union earlier this month. Deutsche Bank analyst Jim Reid said: 'Indeed, if a 15pc total rate inclusive of existing tariffs is agreed as suggested, this would mark only a marginal increase compared to the 10pc additional tariffs that EU exports to the US have faced since Liberation Day but with certainty about the future.' EU trade commissioner Maroš Šefčovič met with US commerce secretary Howard Lutnick on Wednesday. Mr Trump said the US was in 'serious negotiations' with the EU and that 'we will let them pay a lower tariff' if the bloc opens up to American businesses. US treasury secretary Bessent said: 'We are making good progress with the EU.' Here is what you need to know: 5 things to start your day Tesla takes veiled swipe at Trump | Tesla announces sharply lower profits amid a political backlash British Army tests German-made kamikaze drones | Start-up has raised £9m and is looking to make the devices in UK after working with MoD The wealthy seaside idyll facing a tidal wave of taxes | Residents of 'Britain's Palm Springs' have seen their lives turned upside down by Reeves's raid BT poaches Virgin Media O2's finance chief | Telecoms giant to appoint Patricia Cobian after four years at rival Sam Ashworth-Hayes: China and America are now locked in a race for the next superweapon | As a new cold war beckons, nurturing homegrown tech and talent has scarcely been so critical What happened overnight Asian shares rose amid optimism that the US-Japan tariff agreement will be followed by more trade deals. Traders are speculating that the US may soon reach a trade agreement with the European Union, after the Trump administration struck deals with Japan, the Philippines and Indonesia earlier this week. European leaders were meeting with top Chinese officials in Beijing to discuss trade, climate change and global conflicts. But observers said solid agreements were unlikely. In Asian trading, Japan's Nikkei 225 surged nearly 2pc to 41,983.50. The Shanghai Composite Index added 0.4pc to 3,595.58 while Hong Kong's Hang Seng index rose 0.4pc to 25,631,08. South Korea's Kospi climbed 0.9pc to 3,211.21 after central bank data showed Thursday that the country's economy expanded at a 0.6pc annual rate in the last quarter, above expectations thanks to robust private consumption and exports. India's BSE Sensex edged 0.7pc higher to 82,726.64 and Australia's S&P ASX 200 slid 0.1pc to 8,729.20. On Wall Street, the Dow Jones Industrial Average rose 1.1pc, to 45,010.29, the S&P 500 rose 0.8pc, to 6,358.97, and the Nasdaq rose 0.6pc, to 21,020.02. In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.388pc from 4.372pc late on Tuesday. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
