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EDF Energy is cutting costs at Hinkley Point while it thrashes out a deal with the government on the contract for difference and "strike price" for new nuclear, it confirmed on Tuesday.

The energy company indicated some jobs could go at the Somerset site of its proposed new nuclear plant, as negotiations drag on. It currently employs 800 people on the new nuclear programme.

However, EDF maintained that the project had made “very significant” progress, including approval of the reactor design by regulators and awarding of the site licence. A planning decision is due by 19 March.