The UK has become the “most expensive place in the world” to build a nuclear power station because of overly complex bureaucracy and regulation, according to a government review.
The nuclear regulatory taskforce was set up by Keir Starmer in February after the government promised to rip up “archaic rules” and slash regulations to “get Britain building”.
It issued a stark warning on Monday, warning that Britain needed a “radical reset” of the rules around nuclear power to save “tens of billions” in costs and reverse the industry’s decline.
The review blamed a “fragmented” regulatory system that had led to “conservative and costly decisions not proportionate to the actual risk being managed”.
The taskforce was led by John Fingleton, the former head of the Office of Fair Trading. He said of the final report: “Our solutions are radical, but necessary. By simplifying regulation, we can maintain or enhance safety standards while finally delivering nuclear capacity safely, quickly, and affordably.”
It published its interim report in August, which led a coalition of 25 civil society groups to warn of the dangers of cutting nuclear safety regulations. It said the proposals lacked “credibility and rigour”.
The latest recommendations include restructuring the nuclear industry’s regulatory bodies to create a single commission for nuclear regulation, and changing environmental and planning regimes “to enhance nature and deliver projects quicker”.
Fingleton said Britain’s regulations had “made us the most expensive place in the world to build nuclear”, telling BBC Radio 4’s Today programme: “Motorways wouldn’t be very useful if we all drove at five miles an hour but that’s sort of what we’re doing in nuclear safety.”
Ed Miliband, the energy secretary, said the new rules would form a crucial part of delivering the changes needed to drive new nuclear “in a safe, affordable way”.
The report was welcomed by Tom Greatrex, the chief executive of the Nuclear Industry Association. He said the report represented an “unprecedented opportunity to make nuclear regulation more coherent, transparent and efficient” that could make projects “faster and less expensive to deliver”.
“Too often, costly and bureaucratic processes have stood in the way of our energy security, the fight against the climate crisis, and protecting the natural environment, to which nuclear is essential,” he added.
Sam Richards, the chief executive of the pro-nuclear campaign group Britain Remade, said it could mark “a watershed moment for cutting the cost of new nuclear in Britain”.
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“The findings of the taskforce lay bare the litany of regulations that make Britain the most expensive place in the world to build nuclear power stations,” Richards said.
“At a time when Britain’s electricity bills are among the world’s highest, our regulatory system forced EDF to spend nearly £280,000 per fish protected. This is indefensible. These types of modifications have added years in construction and billions in costs; costs that ultimately get passed on to consumers in higher bills.”
Fingleton added: “This is a once in a generation opportunity. The problems are systemic, rooted in unnecessary complexity, and a mindset that favours process over outcome.”
Mike Finnerty, the chief executive of the Office for Nuclear Regulation and chief nuclear inspector, said the taskforce’s findings had informed the development of new regulation strategy, which would be published for public consultation next month.
He said it would set out a “modern, agile and productive regulatory approach” with public trust and strong safety standards at its heart.
