The government is to begin formal negotiations with French state-owned energy group EDF about the construction of a new reactor at Sizewell C in England, and and might take a direct financial stake in its construction.

The government said it was considering a new deal to help EDF finance Sizewell, which might include taking a direct stake in the project.

A statement from the Department for Business, Energy and Industrial Strategy said it would consider a greater role in the project provided there was “clear value for money for consumers and taxpayers”.