Nuclear Reactor Bidding Process Costs Taxpayers £22 Million

The bidding process to develop small modular reactors (SMRs) has cost taxpayers £22 million, critics say, highlighting the red tape hampering Rachel Reeves's growth plans. The process, which took two years, saw companies face extra requirements to prove their "social value", including filling out up to 350 pages on how they would give jobs to disadvantaged groups, such as asylum seekers. Pro-growth campaigners say the cost is "absurd" and that diversity requirements will be "eye-wateringly" expensive.

Key Takeaways:

• The bidding process to develop SMRs cost taxpayers £22 million, with internal costs to Great British Nuclear standing at £2.5 million and private companies receiving £19.7 million.
• Companies were required to fill out up to 350 pages on how they would create jobs for disadvantaged groups, including asylum seekers.
• The tender also stipulated that 50% of those working on the contract should be women, extending to all those working in the supply chain.
• Industry experts warned that time and resources dedicated to delivering, monitoring, and reporting on the requirements would add significant costs.
• The handling of the competition was criticized by Sam Richards, chief executive of the Britain Remade think tank, who said it "shows exactly why it is so hard and so expensive to build new nuclear in Britain".
• The contract was launched in July 2023 by Grant Shapps, the then Tory energy secretary, with the government wanting to "deliver the fastest competition of its kind".
• Rolls Royce SMR was selected as the preferred choice in June 2025, nearly two years after the process began.

Statistics:

• £22 million: The total cost of the bidding process to develop SMRs.
• £2.5 million: Internal costs to Great British Nuclear.
• £19.7 million: Costs to private companies, including £9.3 million to Deloitte, £6.4 million to Ashurst, and £3.8 million to Arup.
• 350 pages: The maximum number of pages required from companies to prove their "social value".
• 50%: The percentage of those working on the contract required to be women, extending to all those working in the supply chain.
• £92,000: The amount spent on software.
• £6,000: The amount spent on IT costs.
• 2021: The year from which public authorities have been required to place a higher-than-usual commitment to "social value" in procurement contracts.

Sources:

• The Times
• Great British Nuclear
• Deloitte
• Ashurst
• Arup
• Britain Remade think tank
• Government of the United Kingdom