UK Government issues comprehensive reforms on nuclear regulation

As a formal response to the 2025 Nuclear Regulatory Review report of the taskforce led by John Fingleton, the UK Government has published Building Our Nuclear Nation. By accepting all 47 recommendations of the Nuclear Regulatory Review in principle and committing to implementation by end of 2027, the Government is proposing what is cited as this century’s most significant reset of UK nuclear regulation affecting civil and defence sector stakeholders. 

The UK is currently the costliest place globally to build a nuclear power station. Hinkley Point C, which is under construction, will be the most expensive power station of any kind ever built anywhere in the world. This is attributed in large part to the existing fragmented and overelaborate regulatory regime. By comparison, some of the elaborate processes and protections applied to Hinkley Point C have not been required for nuclear plants using similar designs (the European Pressurized Reactor) built at Flamanville (in France) and Olkiluoto 3 (in Finland), nor are they a feature of any of the three other UK nuclear power stations previously built in the Severn Estuary. 

The Fingleton Report's Diagnosis

The Fingleton Report identified five main systemic failures in the current nuclear regulatory framework: fragmented multi-regulatory oversight with no designated lead; disproportionate regulatory decisions; flawed legislation prioritising process over outcomes; slow government policymaking; and weak industry incentives from near-monopolistic structures. 

The Taskforce found that there is an ingrained “culture of complacency” and extreme risk aversion pervades the sector, creating a "status quo mindset that perpetuates inefficiency”. It concluded these failures have made the UK the most expensive place to build nuclear projects, with both civil and defence programs suffering substantial cost overruns and delays.

What is Changing

To address the Fingleton Report’s conclusion that a “radical reset” is required for the sector to deliver nuclear technologies safely and at reasonable cost, the Government’s response, in the form of Building Our Nuclear Nation, includes a “roadmap to reform”. 

The UK government has proposed structural, organisational and legislative reforms to cut red tape, support efficiency and streamline the decision-making process, including:

• Establishing a Nuclear Commission, which will be fully functioning by Summer 2028. The Commission will be empowered to resolve regulatory disagreements that individual regulators cannot settle.
• Designating the Office for Nuclear Regulation (ONR) from March 2026 to act as lead regulator for significant multi-regulator projects, and ONR will be merged with the Defence Nuclear Safety Regulator (DNSR) initially by Autumn 2026 (to be fully completed by end of 2028).
• Planning to legislate to enable the ONR to consider strategic factors, such as national security, climate, and economic growth, when carrying out its statutory purposes, significantly expanding its remit.
• Appointing an independent expert advisory panel to examine the nuclear sector's application of the Health and Safety Executive's Tolerability of Risk Framework and report by June 2026.
• Issuing regulatory guidance in order to clarify proportionality requirements, and the Government will define "grossly disproportionate" in legislation. 

Environmental and Planning Reforms

In an attempt to streamline the approvals and permitting process, “Environmental Outcomes Reports” are proposed to replace Environmental Impact Assessments (EIA) by December 2027. 

Additionally, judicial review reforms will be extended beyond Nationally Significant Infrastructure Projects (NSIPs) with proposals to be published in Summer 2026. By Autumn 2026, the Government intends to identify opportunities to accelerate projects through Environmental Delivery Plans under the Nature Restoration Fund. 

Compliance and Cultural Implications

The Chancellor has issued an open letter requiring boards across the sector to assess risk management approaches and address gold-plating within six months. Boards must track cultural indicators, commission independent assessments, and ensure “leadership models behaviours” driving both safety and efficient delivery. 

Other proposals include a Nuclear Regulatory Implementation Panel (NRIP) that will hold all parties accountable for “implementing delivery plans and driving culture change”. It will be chaired by the Department for Energy Security and Net Zero (DESNZ) and will report to the Chief Secretary to the Prime Minister, Secretary of State for Energy, and Defence Secretary. 

Strategic Implications

The reforms have strategic implications for the UK. For Hinkley Point C and Sizewell C, greater coordination and proportionate permitting is aimed at avoiding further delay and cost overruns. Improved delivery is expected to support the UK’s ambition of first-mover advantage globally for small modular reactors (SMRs). For decommissioning sites, proportionate regulation based on reduced hazards could help contain liabilities that would otherwise risk escalating over decades.

The Government has issued a clear message: “If a decision adds cost and delay with little meaningful benefit, it should not proceed”. 

This article was co-authored by Reed Smith Partner, Liam Hart.