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The Edit

ENERGY

Government grants £341M to Sizewell C and pledges to speed up construction preparations

The Department for Energy Security & Net Zero (DESNZ) has allocated £341M to the Sizewell C nuclear power station project so that construction preparations can accelerate. The sum comes from previously secured funding which had been earmarked for the project’s development and brings the government’s total investment to date to more than £1.2bn.

The previous injection of £170M came in July this year, following an initial £700M in autumn 2022.

The DESNZ said the extra money will speed up pre-construction work at the site on the Suffolk coast. It says that the money is to prepare the site for construction, procure key components from the project’s supply chain and expand the workforce.

The £1.2bn of government funding committed to date will drive progress towards the objective of reaching a Final Investment Decision on the new nuclear power station during the current parliament. The funds also support the government’s plans to develop a regulated asset base (RAB) finance model for Sizewell C, which allows private investors to recoup money during the construction phase of the project through taxation.

Taxpayers will pay for the plant through a monthly surcharge on their taxes but are expected to save £10 a month when the plant is operational. However, an analysis from the University of Greenwich School of Business has said that RAB funding could cost the taxpayer more than the government’s projections.

Sizewell C is projected to cost £20bn and is expected to take between 13 and 17 years to build.

KEY STAT

£20bnProjected cost of the Sizewell C nuclear power plant

TUNNELS

Plans to build tunnels linking Shetland Islands move ahead

Plans for a series of tunnels between the Shetland islands have advanced, with Shetland Islands Council having secured a meeting with Scottish secretary Alister Jack.

The council’s proposals for a £500M inter-island connectivity project include four tunnels from Mainland – the largest island – to Yell, from Yell to Unst, from Mainland to Whalsay and from Mainland to Bressay.

The tunnels will partially replace a fleet of 12 inter-island ferries which have gone beyond their intended operational lives. The council said the Scottish Government has agreed to fund the tunnels to the eastern islands.

It is hoped the UK Government will fund the tunnels between Mainland and Yell and from Yell to Unst, connecting with the planned SaxaVord Spaceport on Unst.

WATER

Government bodies accused of breaching sewage discharge laws

Office for Environmental Protection (OEP) investigators have accused the Department for Environment, Food & Rural Affairs (Defra), the Environment Agency and water regulator Ofwat of breaking the law covering combined sewer overflow (CSO) discharges.

The accusations follow a 15-month OEP investigation. They relate to the Environment Agency’s role in devising guidance, setting permit conditions for CSOs and in reviewing and enforcing them.

The OEP claims Ofwat’s failures relate to its interpretation of sewerage undertakers’ duties to deal with sewage and failures to make water companies comply with enforcement orders.

OEP investigators say Defra failed in its duty to issue enforcement orders when water companies failed to deal with sewage correctly. The three bodies have until mid-November to respond.

STRUCTURES

Menai hangers replaced

 The second phase of work to install new hangers on the Menai bridge began in early September.

The bridge closed in October 2022 after an investigation identified a “credible risk of an unzipping failure of the bridge deck”. This was due to the “risk of brittle failure” in the sockets connecting the bridge’s hangers with the main suspension chains.

The current project involves removing and replacing 168 hangers. Forty were replaced between 1989 and 1991.

HIGH SPEED 2

Solihull Council approves 425m long High Speed 2 viaduct

Solihull Metropolitan Borough has approved designs for High Speed 2’s (HS2’s) planned Balsall Common Viaduct in Warwickshire. Approval was given on condition that there will be community engagement and work to blend the structure into the local environment.

The council approved plans for the 425m long viaduct after hearing feedback on environmental sustainability, landscape integration, visual connectivity and public access.

Main works contractor Balfour Beatty Vinci JV will build the structure, working with a design joint venture of Mott MacDonald and Systra. The project has undergone design changes over the last 24 months.

These include reducing the height of a railway embankment parallel to a local stream by 75m, reducing the height of single piers by 17% and that of twin piers by 28%, to give the structure a more streamlined appearance.

ROADS

Government spends £560M on late running projects

In the year to the end of May the Department for Transport (DfT) spent £567M on projects which should have finished by the time National Highways’ RIS1 programme ended in 2020.

Data analysed by NCE shows that the government spent £144M more on RIS1 schemes between June 2022 and May 2023 than on projects in RIS2 which runs from 2020 to 2025.

The total spend on RIS2 schemes during this period was just over £423M and spending on the development of RIS3, the next road spending period, was just under £50M. This means that 55% of the £1.04bn spent on the three road investment plans between June 2022 and May 2023, funded delayed RIS1 schemes.

In July, the Commons transport select committee called for a review of enhancements to the strategic roads network in RIS3, saying they are too expensive and complex (NCE, last month).

KEY STAT

£567MAmount government has spent on delayed road projects in the year to end of May

RAIL

Khan backs Heathrow to south London rail link

London mayor Sadiq Khan has backed calls for a southern rail link between Heathrow Airport and south London.

Khan was responding to a question from London Assembly Liberal Democrat leader Caroline Pidgeon. The scheme promoted by Heathrow Southern Railway Limited is a 10km mainly tunnelled rail link from Heathrow Terminal 5. It will connect to the rail networks between Staines and Virginia Water.

The scheme will also enable electric trains to operate between Heathrow and London’s Waterloo terminus via Clapham Junction, Twickenham, Richmond and Hounslow. It will also improve access to Heathrow from South London, Hampshire, Kent and Sussex.

In 2018, the project’s estimated capital cost was between £1.3bn and £1.6bn. In June transport minister Baroness Vere said: “The government remains committed to improving rail access to Heathrow airport.”