UK Nuclear Power Projects Face Cost Surge and Regulatory Overhaul as Government Eyes Speed and Savings

Ministers have pledged to accelerate key nuclear projects across Britain, aiming to position the country as a global leader in green energy. The move accompanies a Government-commissioned taskforce’s call this week for a comprehensive overhaul of the UK’s nuclear regulations, which it characterised as excessively slow, inefficient, and costly.

The independent taskforce’s inaugural report spotlighted the burden of complex and expensive regulatory layers, suggesting these are impeding vital infrastructure projects and inflating costs—including that of the UK’s nuclear deterrent. John Fingleton, the taskforce leader and former chief of the Office of Fair Trading, emphasised nuclear energy’s role in supporting net zero ambitions and ensuring strategic security. He warned the regulatory system had grown unwieldy, driving up expenses without delivering proportional safety or environmental improvements.

Miatta Fahnbulleh, the minister overseeing energy consumers, echoed the critique of “needless bureaucracy” delaying sizable British infrastructure plans. The department intends to collaborate with the taskforce to modernise outdated rules, fostering growth, job creation, and energy security for the nation.

This regulatory reset comes in the wake of rising financial concerns. Ministers have conceded that the Sizewell C nuclear project may now cost up to £48bn, a full £10bn higher than the approved budget just a month ago. This figure has more than doubled since the £16bn projection in 2016. Meanwhile, the Hinkley Point C project in Somerset has seen delays of six years and is £28bn over budget.

The rising price tag for nuclear initiatives is causing concern for British households. A new levy, designed to support the financing of Sizewell C, will be introduced this autumn and is expected to add an average of £12 per year to the typical household bill.

The taskforce identified a “risk-averse culture” within nuclear regulation, where bureaucracy often outweighs proportionate safety requirements. It also drew attention to duplicated and inconsistent rules spread across overlapping regulatory agencies, and the challenges posed by obsolete planning laws.

Government officials pledged to work with the taskforce to develop a new strategy for the nuclear sector, ensuring both the timely and safe completion of projects. The final set of recommendations is anticipated in the autumn. The Office for Nuclear Regulation has expressed its continued commitment to providing expertise as the taskforce finalises its proposals, hoping to shape regulation that supports innovation while maintaining robust standards.