Great British Energy's £8.3 billion budget has been redirected towards small modular reactors (SMRs).

Great British Energy, the UK's newly created public power company, has seen a shift in the £8.3bn ($11.27bn) budget initially provided by the government, according to a Politico report. The government had dedicated this budget for five years to clean power initiatives like wind and solar projects. Chancellor of the Exchequer Rachel Reeves' spending review in June 2025 has now allocated £2.5bn of this funding for the development of small modular reactors (SMRs) in collaboration with Rolls-Royce through the government agency Great British Nuclear (GBN). The SMR initiative began in 2023 under the former Conservative government. As a result, Great British Energy's ability to invest in renewables has dropped to less than £6bn.

Two government officials have disputed claims that this represents a cut to the original budget, suggesting that there may be a synergy between GBN's roles and those of Great British Energy outlined in its founding document. A third official mentioned that the decision was made quickly, just prior to Reeves' financial review. Additionally, the spending review indicates that £4bn is classified as financial transaction funding, which limits Great British Energy's ability to directly own and operate projects, allowing the funds to be used only for grants and minority stakes in clean energy. The third official indicated that this would limit the company's independence and reflect the Treasury's attempt to control the emerging public energy enterprise. The Treasury has not commented on these matters.