Boris Johnson approves nuclear power plant costing billions - weeks before new Prime Minister arrives

Funding for the Sizewell C nuclear power station has been approved in Suffolk, and the government will take a final decision on public investment later this year - although it could be £6 billion

Computer generated images of Sizewell C (

Image: document)

Boris Johnson has been given the go-ahead to fund a new multi-billion pound nuclear power plant, raising concerns among some Liz Truss allies that it could limit his economic vision.

Whitehall sources have confirmed that the Prime Minister and Chancellor Nadhim Zahawi have given the green light to funding the construction of the Sizewell C nuclear reactor in Suffolk.

Private funding will be sought for the project, which is estimated to cost between £20-30 billion.

The government is then expected to make a final decision on public investment early next year, and it is expected to buy a 20% stake in the plant, which would cost up to £6 billion.

Business Secretary Kwasi Kwarteng, who is set to be Ms Truss' chancellor if she wins the Tory leadership race, is said to be "overwhelmingly" in favor of the plan.

But his camp does not seem united on the issue, with Chief Treasury Secretary Simon Clarke expressing his concerns to Messrs. Johnson and Zahawi.

This could limit Liz Truss' buying powers (

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REUTERS)

In a leaked letter to The Sunday Times, Mr Clarke suggested acting now would tie the hands of their successors.

Mr. Clarke, who is expected to secure a senior Cabinet post if Ms Truss wins, said Sizewell C's costs are 'sufficient to materially affect the spending and budgetary choices of a new government, particularly against the backdrop of wider pressures on public finances".

While essentially a caretaker Prime Minister after being forced to resign following a succession of scandals, Mr Johnson had previously said he would not make major decisions before leaving office.

Ms Truss, the favorite to replace Mr Johnson on September 6, has promised tax cuts, including a reversal of the National Insurance hike which costs at least £30billion a year.< /p>

But it is under increasing pressure to offer more...