Ministers sending 'terrible signal' over delay to £1.3bn tidal lagoon project

The backers of Swansea’s tidal lagoon power project have warned the Government that it risks ruining its reputation among investors by continuing to ­delay a decision on the £1.3bn scheme.

In a letter to the Treasury, seen by The Daily Telegraph, 28 high-profile shareholders accused ministers of sending a “terrible signal” to entrepreneurs that could prove “extremely damaging” to their reputation.

The letter was signed by City figures and veteran energy industry players as well as serial entrepreneurs including Adam Bolan and Richard Reed, the co-founders of Innocent drinks.

The Conservatives gave their blessing to the project in the 2015 election manifesto but have yet to make a decision on whether to support it. Philip Hammond, the Chancellor, said the Treasury was carefully considering the strategic rationale for the project.

The scheme requires a revenue stream of £89.90 per megawatt hour of electricity it delivers to the grid.

Mr Hammond said he would provide clarity as soon as he is able to do so.