The UK Government will take a £5 billion stake in the new Wylfa nuclear power station in North Wales, in a departure from normal Government policy; and while the Government has ruled out direct investment in nuclear projects for decades, it will work alongside the Japanese firm Hitachi to build the 3GW station.

The project is expected to create thousands of jobs and generate power for around five million homes. The power station is expected to cost around £16 billion and generate electricity at around £75 per MWhr.

Matt Rooney, engineering policy adviser at the Institution of Mechanical Engineers (www.imeche.org), said: “Once built, it will provide large quantities of reliable low-carbon electricity, helping the UK meet its decarbonisation targets under the Climate Change Act.

"Both the construction of the plant and its operation would provide hundreds of high-skilled engineering jobs in North Wales for decades to come. It would also bolster the long-term outlook for the nuclear manufacturing supply chain in the UK.”

Mr Rooney said the decision took on extra importance in the wake of the decision to leave the European Union, with the UK facing loss of access to the single market for nuclear goods and services.

“The statement by the Government that it may invest directly in electricity generation is a major development — one that recognises the important role that state financing could play in reducing the cost of large-scale low-carbon energy projects.”