Government plans for a new generation of nuclear power stations have been boosted after French group EDF unveiled a £12.5bn deal to buy British Energy.

The deal will net the Government more than £4bn for its 36% stake in BE and will kickstart a wave of new UK plants.

EDF - majority-owned by the French government - said it wants to construct two reactors each at Hinkley Point in Somerset and Sizewell in Suffolk.