LONDON (Reuters) - Britain should get on with approving the $24 billion Hinkley Point nuclear power project otherwise the world's fifth-largest economy could face power shortages in the future, said the man seeking to lead Britain's opposition Labour Party.
Prime Minister Theresa May's decision to review the building of Britain's first nuclear plant in decades has raised concerns that her new government takes a sterner view of Chinese investment, potentially souring ties with Beijing.
Owen Smith, who is seeking to replace socialist Jeremy Corbyn as Labour leader, said Britain should be investing in Hinkley Point and stop dithering over the deal.
"We should be investing in Hinkley Point but we could be doing a lot more of that by investing in the UK using UK revenues," Smith told ITN.
"There is a very real danger, especially if we do what I want to do and increase the industrial output of Britain, get us making things once more, that we just won't have enough power to keep the lights on as things are going," he said.
Under plans drawn up by former prime minister David Cameron, French utility EDF (PA:EDF) and Chinese partner China General Nuclear would fund the 18-billion-pound cost of the project, while Britain committed to pay a minimum price for the power generated by the plant for 35 years.
May's decision to review the project indicates a much more cautious view of Chinese investment and a willingness to take a tough line with EU allies such as French President Francois Hollande.
"We should be getting on with it [Hinkley Point] not least because there are thousands and thousands of jobs depending on this project," Smith said. "Prevarication and weakness from the government is leading to jeopardising those jobs."
Britain's business ministry said the government had plans in place to ensure enough supplies and that all aspects of the Hinkley project were being carefully looked at.
"Keeping the lights on is non-negotiable, and the government has plans in place to ensure we always have enough supplies," a spokeswoman for the Department for Business, Energy & Industrial Strategy said.
"The UK needs a reliable and secure energy supply and nuclear is an important part of the mix. The government is now carefully considering all the component parts of the Hinkley project and will make its decision in the early autumn."
Labour has been locked in a bitter power struggle since the June Brexit vote, with critics of Corbyn saying he did not work hard enough to persuade the party's voters to back remaining in the bloc.
Smith has proposed an interventionist government that would boost spending by at least 200 billion pounds by selling long-dated bonds.
The opponent of Brexit said he wanted a second referendum on EU membership and that if he became leader he would make Labour argue for continued membership at the next general election, due in 2020.