UK government scraps hydroelectricity plans

18 Oct 2010
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UK government scraps hydroelectricity plans

The coalition government in the UK has decided not to proceed with plans for a major hydroelectricity facility in Wales.

Shadow Welsh secretary Peter Hain immediately described the move as a "disaster" for the country's future economic prosperity.

Energy and climate change minister Chris Huhne is expected to announce the end of the Severn Estuary project, which is worth billions of pounds, later today (October 18th 2010).

It is thought the scrapping of the hydroelectricity scheme in Wales will be the first of many planned government-funded developments to be axed in the coming days, with the chancellor George Osborne set to unveil his Spending Review later this month.

Commenting on the decision, Mr Hain said: "It appears that [Mr Huhne] decided to abandon in its entirety the idea of using the Severn Estuary as a generator of electricity."

Many public spending cuts and tax increases are expected to be announced in the Spending Review, with the government already stating it is going to axe universal child benefits.

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