Lib Dems in nuclear tax warning

Campbell argued the nuclear option would only be possible with vast taxpayer subsidies or a rigged market and could cost the public "tens of billions of pounds".

The party published an analysis of recent international experiences of nuclear power, which found that the US government was forced to offer nuclear subsidies of more than $13 billion to persuade investors.

Applying renewables, microgeneration, energy efficiency and clean coal technology is more affordable, with fewer environmental risks, he said.

"Nuclear power will impose a tax on the country, costing consumers billions of pounds, distorting the market and squeezing out competition," Campbell insisted.

The Environment Agency said it was neither for not against nuclear new build but warned that if the government subsidises nuclear power stations, this could drain investment from other low carbon options.

Clive Bates, head of environment policy, said: "The aim should be to use markets to meet environmental objectives with the technologies that offer the best value for money."