National Policy Statement for Nuclear Energy Generation

Baroness Bloomfield of Hinton Waldrist Excerpts

Wednesday 21st May 2025 Grand Committee

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, noble Lords will know that I always welcome every opportunity to talk about nuclear power in all its forms. I echo the appreciation by the noble Lord, Lord Wigley, of the Minister’s support for the nuclear industry. Of course, I endorse all the comments of the noble Lord, Lord Wigley, about the obvious opportunities for nuclear power generation in Wylfa and Trawsfynydd in north-west Wales. I hope that this Government will work closely with their colleagues in Cardiff Bay to bring these projects about as speedily as possible.

It has also been good to welcome a new voice on these Benches. My noble friend Lady Maclean of Redditch will certainly prove to be an enthusiastic Member of the House, as evidenced by her barnstorming maiden speech.

The importance of nuclear energy in securing the UK’s future cannot be overstated. It is essential for energy independence, affordability and achieving our climate goals. We must adopt a diverse and balanced energy mix, one that is secure, sustainable and capable of providing affordable, reliable power for generations to come. In this mix, nuclear power plays an indispensable role. It is clean, reliable and can provide the baseload power necessary to complement intermittent renewables such as wind and solar.

The updated national policy statement, EN-7, represents a welcome and crucial step forward in the UK’s energy strategy. It is vital that the future of the UK’s energy generation is guided by a long-term vision grounded in a pragmatic understanding of what the future requires. Nuclear energy is central to that vision.

Of course, we must be mindful that innovation in nuclear technology comes with challenges. The development of SMRs and AMRs requires significant investment, careful regulation and rigorous safety standards. To an extent, the statement acknowledges some of these concerns and I welcome the Government’s commitment to ensuring the highest safety standards. Nuclear power has long been one of the safest and most secure energy sources available, and it will continue to be so with the right regulatory framework in place.

Here I stress that it would be enormously helpful if regulation between the international regulatory authorities could be aligned, as the Minister suggested it might be, thereby cutting down the expensive and time-consuming duplication of processes.

Energy security is one of the most pressing challenges of our time and nuclear energy will play a pivotal role in tackling this reality. The geopolitics of 2025 mean that energy is no longer just an industrial policy but at the very heart of national defence. The UK now imports 70% of its gas, largely from Norway and the USA. Additionally, 20% of peak UK gas comes through the pipeline between Norway and the UK.

Despite this, to achieve the Government’s clean power 2030 target, we are shutting down our domestic production of oil and gas, which supports an entire sector of jobs, brings tax revenue to the Exchequer and encompasses part of that 72% of hydrocarbons which we still rely on and will continue to rely on through the necessary transition period. It is particularly concerning that industry bodies, particularly Energy UK, have questioned whether the Government’s focus on clean power by 2030 could actually divert resources away from nuclear projects in the short term.

The UK completely removed all coal-fired power in 2024. It was largely replaced by both gas and naturally unreliable renewables. Relying on any one technology makes an electricity grid less resilient. However, nuclear power is zero carbon and will be integral in stabilising the grid when so much electricity comes from intermittent renewables. Even the former Prime Minister Tony Blair has argued that:

“Nuclear power is going to be an essential part of the answer”


to net zero. Writing in the foreword of a report by his think tank, the Tony Blair Institute, he rightly acknowledges that small modular nuclear reactors, nuclear fusion and other advanced technologies can help lower the emissions of the electricity sector.

So we welcome the updated EN-7, which emphasises the development of SMRs and AMRs alongside traditional gigawatt-scale nuclear plants. SMRs, in particular, offer significant benefits such as smaller footprints, lower costs and faster construction, making nuclear power viable in areas where large-scale plants are impractical. As the Minister stated, AMR technologies offer the potential to co-locate safely alongside data centres and heavy industrial users of power, such as the Port Talbot steelworks, providing dedicated power outside the grid.

We can also look towards nuclear power’s capabilities in meeting the UK’s ambitious sustainable aviation fuel mandate. This requires 22% of sustainable aviation fuel use in total jet fuel demand by 2040. This must not be overlooked: unlike intermittent renewable sources, nuclear power provides the steady, reliable energy supply demanded by large-scale SAF production. I hope the Minister recognises that significant investment is required to ensure the scalability and sustainability of nuclear energy in this sector.

By supporting nuclear innovation, we can position the UK as a global hub for nuclear expertise and technology, attracting investment from around the world. This is not merely about energy; it is about securing the UK’s future growth and prosperity. It is about ensuring that Britain remains a leader in high-tech industries, while creating jobs and fostering growth in communities across the nation—particularly those left-behind communities in the Midlands, Wales and the north-east. A strong, homegrown nuclear sector is central to achieving this.

We must also acknowledge the UK’s role as a global leader in nuclear innovation. Many of these advanced reactor designs are being developed right here in Britain. With the support of EN-7, we can strengthen the UK’s nuclear sector, positioning the country as a world leader in nuclear energy, but may I first make a few suggestions to the Government?

NESO needs to prioritise the siting work for advanced nuclear technologies. Sites identified as having potential must be reserved as strategic national assets now. Many of these could be currently designated as brownfield, such as those being identified in the Midlands near water and transmission lines; they must not be covered over by houses or solar farms for short-term gain.

The Government need to share the heavy lifting on the production of the appraisal of sustainability. Having to evaluate all possible alternative sites and flood protection for the entire life of the project is an onerous burden for developers, as highlighted by my noble friend Lady Coffey. The Minister will know that I have concerns about the method of gaining community support. While this is important in general terms, as the noble Lord, Lord Ravensdale, outlined, endless contact between developers and communities with potential sites could become counterproductive—unless they are in Wylfa or Trawsfynydd, perhaps. Lastly, the Government should ensure that the Committee for Climate Change has a nuclear advocate—it has long been missing from its mix.

To conclude, the updated EN-7 represents a positive step towards a cleaner, more secure and more prosperous energy future for the UK. By embracing nuclear energy, we can achieve energy independence, stabilise our grid, reduce emissions and create economic opportunities across the country. Finally, I very much look forward to the end of spring—in six weeks’ time—as, I am sure, does the Minister.

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Baroness, Lady Bloomfield, is very experienced and knows that departmental spring is not entirely consistent with meteorological science. I very much take the point, however, that we all want to see a final investment decision on Sizewell C—except the noble Lord, Lord Howell—and great progress on the SMR programme.

This has been a really interesting debate, and I just make it clear that the contributions that noble Lords have made today will be fed into the consideration of our final version of EN-7. In a sense, the debate does not finish here; we will make sure that the contributions are considered very carefully by officials before we receive final advice on the contents.

I congratulate the noble Baroness, Lady Maclean, on a very lively, excellent maiden speech. We look forward to her future contributions. She will discover that the West Midlands is not overrepresented in your Lordships’ House, so it is very good to see her here. I did not know about Redditch tights—I now know—but I do know about the potential of Redditch. I also share her view about the need to encourage the aspirations of young people in Redditch, and I know about the work being done on the educational system there to try to improve aspirations, including through access to higher and further education.

This debate has been very encouraging. When I last had this job in 2008 to 2010, there was much more of a mixed view, inside and outside Parliament, about the role of nuclear. There has been a huge change in attitudes and in support for nuclear. We know that from the regular polling that my department has done on public attitude following Putin’s invasion of Ukraine. Among experts and political parties, there is generally now a baseload of support for nuclear, which is really encouraging. Given the long lead times of investment decisions and build for nuclear, having stability for the companies that wish to take this forward is absolutely crucial, as it is in terms of building a UK supply chain. This kind of debate is therefore very encouraging in that respect.

I know that the noble Lord, Lord Howell, was disappointed with EN-7. On future demand, there is clearly a range of estimates for what we need based on assumptions including the extent of electrification, the role of hydrogen and the growth of artificial intelligence. I assure him that we are not wedded to a single estimate, but we clearly have to flex the supply of electricity generation according to how we go forward in relation to the future.

On EN-7 and his argument that it insufficiently mentions SMRs, we believe that EN-7 caters to SMRs throughout. We do not refer to broad categories such as SMRs as planning decisions will reflect the facts of each set of plans rather than what they are called. The different characteristics of SMRs are addressed, particularly when it refers to phased development and cooling, where we recognise that different stations may be cooled in completely different ways.

The noble Lord, Lord Howell, made a number of remarks about Sizewell C that I do not think other noble Lords agree with. I know that he thinks that the replication of Sizewell C in relation to Hinkley Point will not lead to improvements in productivity, but I point him to the improvement in productivity between unit one of Hinkley Point C and unit two. To be fair, we know that Hinkley Point C has had many challenges, and clearly we are all anxious to see further progress made, but it has made progress. There is no doubt that it has learned about how to build on a huge site using the modular approach in many ways. I am convinced that Sizewell C will benefit hugely from it. Pulling the plug on Sizewell C and saying that we will put all our eggs in the SMR basket would be greeted with consternation within the industry. That is not the way to go forward.

I agree with the noble Baroness, Lady Coffey, about the RAB model. That was an important consideration. I was interested in what she had to say about the coalition agreement in 2010, and I still remember the decision made to withdraw support from Sheffield Forgemasters in 2010, which I think was a big mistake. I pay tribute to Sheffield Forgemasters, the work it is now doing and its potential.

On the financing of SMRs, there are plenty of companies which are knocking on our doors saying, “Just give us the green light. We can develop all this. We do not need any public money”. Allow me to be a little sceptical, particularly when it comes to first-of-a-kind development. Coming back to the comments of the noble Baroness, Lady Maclean, about the share of GDP spent on public finances, et cetera, nuclear is one of those areas where you need public and private partnership. Of course we will develop our policies over the next few months, in particular in relation to advanced modular reactors, and look at the best way we can encourage private finance, because clearly we need the private sector to finance the development of AMRs in future. However, at the moment, and we have seen this with Sizewell C, public finance will be involved with the development of SMRs. Public finance is involved.

Clearly noble Lords are impatient for us to get to the end of the current programmes. We have basically inherited GBN’s assessment of SMRs. We cannot intervene now. It is working as hard as it possibly can to get decisions to government very quickly. Of course it is then tied into the spending review process, as it has to be, but the spending review outcomes are going to be known within a very short space of time. I do not accept that we are at risk of falling behind. I know from various discussions that I have had with other countries that there is huge interest in the GBN process. I hope that at the end of the process we will have a decision that will enable us to go forward with confidence and with the huge opportunity of developing a UK supply chain.

On the various contributions of the noble Lord, Lord Ravensdale, I first thank him for all the work he has done in the Midlands, showing the potential that we have in the Midlands, both east and west. He and his colleagues, uniquely, have brought the east Midlands and the West Midlands together, which as he and anyone living in the Midlands will know, is one of the greatest challenges known to men and women. Even though Brum is only a few miles away from Derby and Leicester, pulling them together is hard. He and his colleagues have done that and my department is very interested in the work that he is doing. I have already met him and I hope that he will carry on this work. It is worth saying that we already have huge assets. For instance, at the grid in Warwick, we have great skills and I am sure that we will contribute more in the future. That is probably not a departmental view, but noble Lords will know where I stand on these matters.

On community support, I very much take the point. It is an unknown quantity at the moment. With the existing sites that are listed in EN-6, we know that there was broad support in the local community for the development of new nuclear. We do not really know what the appetite will be in those areas that are new to nuclear. I take the point about the need for communications—mainly by the developers but I accept that the Government have a role. I should say that today we published our Community Benefits and Shared Ownership for Low Carbon Energy Infrastructure working paper for consultation, which may be helpful in encouraging communities to host infrastructure, receiving high-quality benefits in a consistent manner by building on existing voluntary approaches to community benefits.

On the noble Earl’s point about the Strategic Spatial Energy Plan, this will not be limited by EN-6 but will be consistent with it, as it obviously should be in EN-7. He asked about the threshold of 50 megawatts in England and 350 megawatts in Wales. This applies to planning applications, so it would naturally incorporate entire projects and entire sites. We think it unlikely that a developer would split a complex nuclear project into multiple planning applications to try to game the system. If they did, we could call in the applications and treat them as nationally significant infrastructure projects. I think that, given the scale of investment that is concerned, that is very unlikely.

I turn to the comments made by the noble Baroness, Lady Coffey, I take her point on population density. We had a lot of discussions about that before we published EN-7 and we are continuing to look at it in the EN-7 consultation. Any change we make has got to be broad-based and based on strong evidence. There is obviously a balance between safety, certainty of industry and public confidence. We are still considering this point. We are of course reviewing the national policy statement at least every five years and the review will give us an opportunity to revisit this as evidence develops and we gain experience of community attitudes in, say, urban populations, which we do not really know at the moment.

A very important point was made about water. EN-1 requires applicants to consider water quality and resources in detail, covering both construction and operation. Obviously, they need to engage early with the Environment Agency and water companies, but it is a substantive point. Of course, we have the more general issue of the need to build reservoirs, and I am well aware of some the discussions taking place about this at the moment.

My judgment on Sellafield, having revisited it after a gap of 14 years, is that it has made considerable progress. There is a long way to go, but I pay tribute to the work that is being done, the current leadership at Sellafield and the good relationships it has with the workforce. My judgment is that we need to see Sellafield as part of the future rather than just a legacy of the past. The skills developed at Sellafield—and, generally, in nuclear decommissioning—contribute to the industry as a whole. Confidence in the future and new nuclear depends on our being seen to deal with waste and decommissioning as effectively as possible.

We did not know that the noble Lord, Lord Wigley, was such an expert and had such experience. His constructive approach to new nuclear in north Wales is very much appreciated. He has made the point to me, and I very much accept it. He will know that Wylfa offers many attributes; that is why it is listed in EN-6. I also understand the issue about Trawsfynydd and isotope production. Isotopes are a matter for my colleagues in the Department of Health, and I encourage the noble Lord to talk to them about that.

I visited Wylfa in 2009 and met many people in the workforce there. At that point, they were very keen to see nuclear development continue. It is a matter of great regret that the Horizon project fell apart, but we certainly consider Wylfa to be a site that offers many attributes.

On the issue of the sites listed in EN-6 that missed out, we are saying, in essence, that we have those sites and they continue to have much to offer, but we want a more flexible siting to allow more areas to come in. Before this was published, I was very keen not to suggest that, suddenly, the sites we listed in EN-6 were being overlooked, because they are not. Clearly, they offer many advantages.

My noble friend Lord Browne made a number of important contributions. On Scotland, it is interesting that, between 2004 and 2021, nuclear energy accounted for 25% to 43% of annual electricity generation. Scotland has this hugely rich heritage, and it is a tragedy that, at the moment, we cannot see new nuclear developments in that country. Let us hope that we see a change.

My noble friend’s remarks on the COP declaration on nuclear energy—on the risk of proliferation and the security issues that arise—were very important. The COP declaration itself and the addition of a number of countries—which, as he mentioned, was announced in the previous COP—are to be encouraged.

We are strong supporters of the International Atomic Energy Agency, which has such a vital role to play on nuclear deproliferation. Its work in Ukraine over the past year or two has been amazing and the people involved in that deserve great credit. The UK is one of its strongest supporters and is acknowledged as such. I have had a series of meetings with the agency to talk about these matters.

I totally agree with my noble friend about the UK’s potential with the SMR programme globally. I know that we need to make progress quickly, but we have not missed, and will not miss, the boat. We have a great opportunity.

I very much take the point made by the noble Earl, Lord Russell, about the energy needs of AI, which will make huge electricity demands but can make great contributions to improving our energy efficiency and the efficiency of the whole energy sector. We want AI to be linked to decarbonised energy. That is what is so exciting about what is happening in the US and the support that companies such as Amazon are giving to AI centres linked to nuclear power stations. We are looking at that carefully. Over the next few months, we want to work to ensure we have policies that make it as easy as possible for these to be developed using funding from private finance. The noble Earl asked me a question about one or two SMRs. He does not really expect me to be in a position to answer that. We will just have to be patient at this point.

Geological disposal is important, of course. EN-7 makes a number of points about waste, its importance and how it needs to be factored into the developers’ considerations and applications. I cannot give timelines on geological disposal. The noble Earl will understand that the Lincolnshire position is difficult at the moment, and we are not absolutely certain about where we are going with that. Clearly, the long-term future in relation to waste is geological disposal, but interim storage is of the highest quality and can assure safety. It fits into the general position. I cannot comment on the CNC role and security issues. All I will say is that security at our existing sites and new sites is crucial.

I fear I am going over my time, but I must refer to the important contribution by the noble Baroness, Lady Bloomfield. We are totally agreed on the importance of nuclear energy and safety standards. Let me reassure her that our review of the regulatory system will not put safety at risk. I will make just one point about international collaboration. Surely we can do more to share knowledge and information. If in the US, for instance, a technology has been given approval, there must be ways in which we can have reciprocity. I am convinced of that. In relation to the collaboration between regulators, we need to do much more. A comment was made earlier about the roles of Natural England and the Environment Agency. We have to ensure that these regulators work together and in a timely way.

Perhaps I can pass on oil and gas, as we have debated that many times, but nuclear innovation is very important. The Prime Minister’s visit to the UK National Nuclear Laboratory in Springfields only a couple of months ago was a signal of the Prime Minister’s support for nuclear and our innovation.

I am sorry that I have taken so long, but this has been a really interesting debate. The contributions of noble Lords have been very helpful. They will be carefully considered by my officials before advice is given to Ministers.

[Baroness Bloomfield of Hinton Waldrist (Con)]

I apologise to the Committee. I should have started my speech by drawing attention to my registered interests. I still have a small legacy involvement with a Canadian nuclear company.

[Lord Hunt of Kings Heath (Lab)]

I thank the noble Baroness.