UK Could Be Left Exposed Without Bailout For Defence And Nuclear Suppliers

The UK could be forced to rely on other nations for key nuclear and defence components unless ministers offer heavy industry an energy bailout, The Independent has learnt.

- Anna Isaac Ashley Cowburn

Without fresh funds factories could be forced to halt production of critical inputs such as high-tech ceramic coatings, steel components and bespoke glassware, according to government and industry sources. Such products are used in a range of high security environments, including nuclear reactors, laboratories, ships and submarines.

Britain would be forced to seek many of these inputs from overseas if these domestic companies fail, according to industry and government sources. This could breach some departmental procurement rules and the government’s aims laid out in its Integrated Review. The review pledged to “strengthen the resilience of our critical supply chains” so that the UK can engage with China “with confidence”.

The government is looking to push China out of key nuclear power projects over security concerns. Last month fresh details of plans emerged to force Chinese energy giant, CGN, to give up its 20 per cent stake in the Sizewell C nuclear plant in Suffolk.

Concerns over whether a failure to secure financial aid will push sensitive suppliers to the wall will add to pressure on the Treasury, after Kwasi Kwarteng, the business secretary, presented a plan to the department for assistance for industries worst affected by soaring energy prices.

The cabinet minister made a formal request to Rishi Sunak’s department to give support to energy-intensive industries yesterday during growing calls for emergency assistance and warnings over job losses. It followed a string of bilateral meetings with representatives of ceramics, steel, glass and chemicals industries throughout yesterday.