UK Government’s Nuclear Reactor Plans Stalled by Social Mandates

The UK government’s initiative to develop small modular reactors (SMRs) has faced significant setbacks, primarily due to social mandates that require companies to demonstrate “social value” alongside their nuclear capabilities. As of now, no civil SMR has been constructed, highlighting a persistent gap between policy aspirations and practical execution.

Reflecting on the past, the proposal to advance SMR technology emerged during a vastly different political landscape in March 2016, when then Chancellor George Osborne announced the government’s invitation for bids to foster the next generation of nuclear reactors. Since that announcement, the intervening years have seen multiple leadership changes, yet the progress has been dismal, with Rolls-Royce SMR Ltd. only recently selected as the preferred bidder in mid-2023.

The delays stemmed from extensive bureaucratic processes and a lack of decisive action, which have frustrated industry stakeholders. Under the leadership of Theresa May, the government downgraded the competition to a mere feasibility study, much to the dismay of companies that had invested time and resources into their proposals. Subsequent government efforts under Boris Johnson aimed to reignite interest in the sector, but it was not until Rishi Sunak assumed office that a renewed push for SMRs took shape.

Regulatory Challenges and Economic Implications

The selection process for the preferred bidder, which took two years, was marred by what critics describe as “absurd regulatory gymnastics.” Companies were required to prove their commitment to social initiatives, including creating job opportunities for refugees, immigrants, and individuals facing employment barriers. Additionally, the government mandated that at least 50% of the workforce on contracts be women, addressing an industry traditionally dominated by men.

The financial implications of these requirements are significant. The government reportedly spent £22 million of taxpayer money during this prolonged selection process, while the nuclear companies likely incurred substantial costs to align their proposals with these social mandates. Critics argue that this approach diverts focus from the core objective of developing functional nuclear reactors, particularly amid ongoing energy crises and commitments to achieve net-zero carbon emissions by 2050.

Despite the pressing need for sustainable energy solutions, the government’s insistence on intertwining social policy with nuclear energy development has raised concerns regarding efficiency and efficacy. The situation echoes a humorous anecdote attributed to economist Milton Friedman, who critiqued a job creation scheme involving manual labor rather than efficient machinery. This metaphor resonates with the current scenario, where the push for social value may hinder the essential objective of advancing nuclear technology.

In conclusion, the UK government’s approach to developing small modular reactors has faced substantial obstacles due to social policy mandates that overshadow the primary aim of building effective nuclear infrastructure. As the country navigates climate commitments and energy demands, the focus must shift back to ensuring the timely and efficient development of nuclear resources, rather than getting sidetracked by additional social obligations.