THE communities around the proposed new Hinkley C nuclear power station are set to benefit from £128 million over 40 years - provided the station is built.

The Government announced on Wednesday that local authorities hosting such developments would receive "community benefit" payments worth up to £1,000 per megawatt hour for up to 40 years.

And that means around £3 million a year coming to the area.

It follows on from already unveiled plans to allow local authorities to keep a share of any business rates and growth generated by such schemes for a maximum of ten years.

Cllr Tim Taylor, the leader of West Somerset Council, said the authority was "delighted" with the Government's proposals but stressed the money was for local communities, not councils.

He said: "Community benefit will be used to recompense and reward communities affected by Hinkley Point C and not to fund West Somerset Council or its partner councils.

"West Somerset Council, as the host authority, should in addition benefit considerably by retaining a proportion of business rates coming from Hinkley Point C, once electricity generation starts."

However, despite having planning permission to build Hinkley C, developer EDF Energy has yet to go ahead with its plans as it is still thrashing out a price guarantee deal with the Government for electricity generated at the new station.

The community benefit payments are designed to both recognise and offset the impact on local people of hosting nationally important, large-scale projects, such as new nuclear power stations.

Cllr Taylor acknowledged the work done with both Sedgemoor and Somerset County Council to secure a community benefit package as part of the Hinkley C development.

"Together with our partner councils we have been campaigning strongly for years that communities hosting new nuclear ought to be recognised in the same way as those housing wind farms and other forms of renewable energy," he said.

"This money will provide a real boost to our communities and, along with the payments of over £90 million secured from EDF Energy under Section 106 agreements during construction, provides a tremendous package of measures which will make a real difference."

The proposed construction of twin reactors at Hinkley Point C would be the first new nuclear development in the country for a generation, with the community benefit worth up to £128 million for local residents over the next 40 years.

The Government said it recognised not only the importance of new nuclear but also the contributions of local communities.

Mr Fallon said: "New nuclear will have a central role to play in our energy strategy, providing heat and light to homes across the country.

"It is absolutely essential that we recognise the contributions of those communities that host major new energy projects.

"This package is in the interest of local people who will manage it to ensure long-term meaningful benefit to the community."

Cllr Chris Morgan, lead member for Hinkley Point and ward member for Stogursey, said: "The day has finally come and I am really, really pleased that our hard work has paid off.

"Community benefit was always a key objective for the councils and we have had to push so strongly for this.

"The parish of Stogursey will always be on the front line with regards to impact during construction and waste storage when the station becomes operational, this money will go a long way to help us deliver schemes in the parish to deal with the long-term issues facing the area."

West Somerset's chief executive, Adrian Dyer, also welcomed the news.

"This announcement is tremendously pleasing and comes following an enormous effort by officers and members here at West Somerset Council, as well as colleagues at Sedgemoor District Council and Somerset County Council.

"I would like to place on record this council's thanks to the Department of Energy and Climate Change who have, ever since we began discussions on this issue, been supportive of the concept and have help champion the need for a community benefit scheme for new nuclear.

"Looking forward we have set up robust and transparent processes to deal with the distribution of Section 106 contributions already secured from EDF Energy and will, after digesting the detail of the package, begin to work with our partners on an approach to managing these funds."

Somerset County Council leader Cllr Jon Osman and Sedgemoor District Council leader Cllr Duncan McGinty also welcomed the package, while potential Hinkley C developer EDF Energy said it was pleased.

"The Government's scheme would ensure over £3 million per year will be made available to the local authorities for a period of up to 40 years," an EDF spokesman said.

"This means that the local community would receive ongoing benefits, securing local economic development during the operation of the power station."

Separately, within the planning system, EDF has agreed nearly £100 million for local communities to mitigate the impact of the new nuclear power station at Hinkley Point C, if it goes ahead.

The spokesman said the project had the potential to provide a huge boost to UK industry, bring enormous benefits to the local economy in terms of employment and business opportunities and provide the country with the secure low carbon power it needs for the future.

The project could create jobs for around 25,000 people during construction.

The spokesman confirmed "positive" negotiations were continuing with the Government over a price for the electricity produced by Hinkley C.