Communities to benefit from hosting nuclear power stations

Eight sites in England and Wales could receive government benefits for over 40 years from when the stations begin operating

The impact of new nuclear power stations on their localities is to be recognised by ensuring communities benefit from the role they play in power generation, government ministers announced today.

Communities at eight sites in England and Wales where new nuclear power stations are to be built - Hinkley Point, Sizewell, Wylfa, Oldbury, Sellafield, Bradwell, Heysham, and Hartlepool - are in line to receive benefits worth up to £1,000/MW, over 40 years from when the power stations begin operating.

Use of the funds will be tailored to specific localities and will be managed locally. The benefits could be worth up to £128m to the area around the proposed twin-reactor at Hinkley Point in Somerset.

This benefits package builds on the government’s business rates retention scheme introduced from April 1 this year. Under these changes, local government keeps 50% of the business rates it collects, together with the growth on that share, for up to ten years.

Local authorities hosting new nuclear power stations will benefit for up to the first 10 years of operation from a share of the significant increase in business rates revenues that will arise. To account for the scale and lifespan of nuclear power stations, local communities will receive further funding from central government for an additional 30 years.

Business and energy minister Michael Fallon said: “New nuclear will have a central role to play in our energy strategy, providing heat and light to homes across the country.
“It is absolutely essential that we recognise the contributions of those communities that host major new energy projects.

“This package is in the interests of local people, who will manage it to ensure long-term meaningful benefit to the community.

“It’s proportionate to the scale and lifespan of new nuclear power stations and it builds on the major economic benefits they will bring in terms of jobs, investment and use of local services.”

Over the next two decades it is forecast that globally there will be £930 billion investment in building new reactors and £250 billion in decommissioning those that are coming off line. 

It is predicted that the nuclear new build programme in the UK alone could generate up to 40,000 jobs in the sector.