British government has given approval on Tuesday to planning for construction of the first new nuclear power station in Britain since 1995.

The Department of Energy and Climate Change said the planned multi-billion pound project at Hinkley Point, Somerset, which is to be operated by NNB Generation, will generate enough low carbon electricity to power the equivalent of 5 million households, making it one of the largest power stations in Britain.

"The planning decision to give consent to Hinkley Point follows a rigorous examination from the Planning Inspectorate, and detailed analysis within my Department," Energy Secretary Edward Davey said in a written statement to parliament.

"I am confident that the planning decision I have made is robust, evidence-based, compatible with the Energy National Policy Statements and is in the best interests of the country," he said.

"It's vital to get investment in new infrastructure to get the economy moving. Low carbon energy projects will bring major investment, supporting jobs and driving growth.

"This planned project adds to a number of new energy projects consented since May 2010, including wind farms and biomass and gas-fired power stations," he added.

Two new reactors will be built, supporting between 20,000 and 25,000 jobs during construction and 900 permanent jobs during operation.

Britain drew up a major energy infrastructure plan in 2010, and the British government is expected to call for investment in infrastructure and housing to boost economic growth in the Budget report expected to be revealed on Wednesday.

"This planned new nuclear power station in Somerset will generate vast amounts of clean energy and enhance our energy security. It will benefit the local economy, through direct employment, the supply chain and the use of local services,"said the Energy Secretary.