HOPES were raised this week that a deal could finally be struck to secure the future of the proposed Hinkley C power station after Chancellor George Osborne reiterated his support for new nuclear.

Speaking at the Conservative Party conference on Monday, Mr Osborne said it was inconceivable the Government would not pursue plans for a new generation of nuclear power stations.

He said: "Should we, the country that built the first civil nuclear power station, say: 'We are never going to build any more – leave it to others'? Not on my watch!"

Government sources have also been quoted in a national newspaper this week, claiming the energy price deal is pretty much "done and dusted".

Energy Minister Michael Fallon told the Financial Times negotiations were nearing a conclusion: "We're not quite there yet, but I hope we will be in the next few weeks," he said.

Although French firm EDF Energy has planning permission to build a new power station at Hinkley Point, it has yet to agree a price guarantee with the Government for the electricity generated from the new plant.

EDF also has to secure support from a third party to help bankroll the multi-billion pound project.

Although the company declined to comment on rumours of an imminent deal, the firm is widely believed to be in talks with the China General Nuclear Group, which could take a 49 per cent share in the Hinkley C project.