Source · Select Committees · Public Accounts Committee

Recommendation 25

25 Accepted

Funding constraints force difficult decisions, risking long-term costs and facility obsolescence.

Conclusion
The NDA acknowledged that its funding settlement for 2025–26 means “there are difficult decisions to be made about some of the less critical aspects”.70 It subsequently told us that it would ideally “remove risk/ hazard and liability at the earliest opportunity” and that decommissioning can free up space for other uses.71 This matters because the Sellafield site is highly constrained, and Sellafield Ltd believes it may need to build some new buildings on land outside the current boundary.72 Sellafield Ltd told us that its current preferred approach for providing analytical services–which it expects to cost much less than RAP would have – is only possible because it had “drive[n] on a broad front” and cleaned out another building.73 It is even possible that slow progress could mean facilities become obsolete while there is still a need for them, at great cost to the taxpayer.74 We are aware from evidence submitted by Cumberland Council that the adequacy of budgets is a matter of local concern.75 68 C&AG’s report, para 16 69 Qq 95–97 70 Q 91 71 Letter from the Group Chief Executive Officer at the Nuclear Decommissioning Authority relating to the oral evidence session held on 20 March on Decommissioning Sellafield, 4 April 2025, page 6 72 C&AG’s report, para 3.11 73 Q 66 74 Qq 50, 95 75 DS0006 19
Government Response Summary
The government agrees to undertake scenario planning by December 2026, focusing on the impact of different funding levels on the Sellafield Ltd mission, to inform an updated mission plan.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Target implementation date: December 2026 To provide improved visibility of the uncertainty associated with the Sellafield Ltd mission which spans 100+ years, scenario planning will be undertaken with a focus on the impact of different funding levels. This will be generated alongside an update to the current plan of NDA and Sellafield Ltd mission. Utilising the Group Strategic Planning capability any Sellafield Ltd scenarios will be used to inform group level modelling and determine estate-wide impacts. Scenarios are informed by strategic assumptions, decisions, options and performance as appropriate. Noting that this will be a first iteration of presenting the Sellafield Ltd plan in the context of a range, a period of maturation will be required to ensure a clear and comprehensive logic exists. It will be necessary to agree the mechanism and timing, including what is published, noting that the NDA already publishes the Nuclear Liabilities estimate which has scrutiny and sign-off from the NAO.