PLANS for a new £16bn nuclear power plant in Somerset which will create up to 25,000 jobs, came a step closure to fruition after the European Commission gave approval.

The commission had been investigating whether the terms of the deal struck between French firm EDF and the Government constituted illegal state aid for the build of Hinkley C.

They said that the UK had agreed to “significantly modify” the terms of the project financing, meaning taxpayers will not be burdened with large costs.

Commission vice-president Joaquín Almunia, in charge of competition policy, said: “After the Commission’s intervention, the UK measures in favour of Hinkley Point nuclear power station have been significantly modified, limiting any distortions of competition in the Single Market.

“These modifications will also achieve significant savings for UK taxpayers.

On this basis and after a thorough investigation, the Commission can now conclude that the support is compatible with EU state aid rules.”

The plant, which could be ready and working by 2023, is expected to employ around 900 people and supply 7% of the UK’s energy need.

Bridgwater and Somerset MP Ian Liddell- Grainger said he was delighted but not surprised about the news.

He added: “This has not come as a surprise – we knew the EC was intending to approve but it is delightful news.

“There has been a real amazing team effort over this in the past few months, between the English and French governments, EDF and everyone else involved.

“It has been an enormous effort and we still have a long way to go but it will be very beneficial to the communities of Bridgwater and West Somerset.”

Leader of Somerset County Council, Cllr John Osman, said: “This is great news and a giant step forward.

“The Hinkley C development will transform our county’s economy in years to come, and having this high-profile development on our doorstep confirms Somerset as a serious destination for business growth in Britain.”

Labour's Southwest Region MEP Clare Moody and Bridgwater and West Somerset PPC and leader of the labour group at Sedgemoor District Council Cllr Mick Lerry also welcomed the news.

Clare Moody said: “Hinkley Point will provide the highquality, long-term jobs and sustainable growth for local communities that are a priority for me as a Member of the European Parliament for the Southwest Region.

Cllr Lerry added: “Having Clare as a Labour MEP has helped to make sure that Bridgwater and West Somerset Constituency can secure the necessary support in the European Commission to make sure that the Hinkley C can go ahead, and she will continue to campaign for community benefit during the construction stage of the power station”.

However Molly Scott Cato, Green MEP for the South West, pledged to continue the fight against the new nuclear power station.

She said: “In waving through the massively problematic Hinkley C deal, the outgoing Barroso-led EU Commission is giving a cynical boost to nuclear power.

“There can be no doubt that the generous terms being offered by the UK government to EDF on Hinkley C amounts to illegal state aid under EU rules.

“It is a scandal that one of the final acts of the Barroso Commission is to turn a blind eye to the illegality of the Hinkley deal.

“This deal, and the precedent it creates, is a massive setback for renewable energy in the South- West and the rest of the UK. Greens will support any legal challenges that may present themselves.”