Energy Secretary Amber Rudd has also backed the plans, adding that the UK has "fired the starting gun" to back the industry.

But experts have warned that new power stations must not be imposed on local communities.

Liberal Democrat energy spokesman Lynne Featherstone said: "It is just striking how little regard the Conservatives have for communities around this country, and the ridiculous lengths they’ll go to to avoid positive investment in renewables.

“The Liberal Democrats stopped this once before, and will fight any attempt to bring it back. We prefer solutions to the climate crisis which have real potential rather than unproven solutions which would not have public support.

“The fact that the Tory answer to our energy problems is to build nuclear reactors in towns across Britain shows just how out of touch with reality they actually are."

A Government source said the project is at such an early stage that there are currently no plans for specific stations, and no detail on how planning permission would be given. Currently, large-scale energy projects are approved by the Secretary of State.

Energy Secretary Amber Rudd said: “New nuclear is a key part of our strategy to deliver a lower-carbon, secure energy mix that we can rely on all year round, irrespective of whether the wind is blowing and the sun is shining. “Small modular reactors could unlock new generation and economic growth. That is precisely why we launched the first phase of a competition to identify the best value small modular design for the UK. We are firing the starting gun on backing this industry of the future and positioning the UK as a global leader in nuclear innovation”.