Chancellor 'will refuse to pay for new nuclear reactors'

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Indy Politics

Tony Blair is facing a fresh clash with Gordon Brown over his plans to build a new generation of nuclear power stations in Britain.

The Treasury is to warn Mr Blair that no taxpayers' money will be made available to build new reactors and that the Prime Minister must prove "the numbers add up" in return for the Chancellor's support.

As the Government prepares to announce an official energy review this week, the Treasury has insisted that it examine the cost of different forms of energy - including nuclear - that could be used to combat climate change.

"There will be no public subsidy for nuclear, we have made that clear," said a senior Treasury source. "The numbers will have to add up."

Mr Brown is being backed by the Department for Environment, Food and Rural Affairs, which has insisted that cost is of paramount importance in the new energy review.

The review, which will include officials from the Department of the Environment, the Treasury, Downing Street and the DTI, is being led by the Secretary of State for Trade and Industry, Alan Johnson.