British government ministers are closing in on a deal that could see China excluded from a project to build a £20bn nuclear power station on the Suffolk coast and pump in tens of millions of pounds of taxpayer’s money instead, newspaper reports said.

The Guardian newspaper said the government could announce plans to take a stake in the Sizewell C nuclear station, alongside the French state-backed power giant EDF, as early as next month.

That would probably result in China General Nuclear (CGN), which currently has a 20% stake in the project to build two EPR unts, being removed from the project.

Reports have said CGN could be blocked from all future power projects in the UK, with ministers reported to be investigating ways to prevent its involvement because of concerns over security.