The UK Government says work has now started on the new nuclear power station at Wylfa.

Rolls-Royce has formally signed contracts with Great British Energy to create three new small nuclear reactors (SMR) - a project which will see up to 3,000 jobs being created locally and another 5,000 jobs elsewhere.

Last November, the Prime Minister announced Wylfa would be the location of the UK's first SMR, six years after plans for a second full-scale nuclear power station were scrapped.

Rolls-Royce says the two-stage contract will allow design and preparation work to get underway, as well as orders for equipment from the supply chain.

Tufan Erginbilgic, Rolls-Royce chief executive, said: "This is a critical milestone for Rolls-Royce SMR, for Rolls-Royce and for the UK as the Government looks to realise its ambition of a ‘golden age’ of new nuclear."

"It is a vote of confidence in our unique nuclear capabilities and further evidence that the strategic choices we have made in the transformation of Rolls-Royce are delivering."

"It also provides crucial contractual certainty in our domestic market that will unlock the opportunity to deploy a global fleet of Rolls-Royce SMRs."

He added: "The team in Rolls-Royce SMR have an unrivalled track record in nuclear design, regulatory engagement, manufacturing and assembly and I would like to thank them for their hard work and dedication in getting to this important stage."

According to the UK Government, the three SMRs at Wylfa will generate enough "stable, clean electricity" to power the equivalent of around three million homes for more than 60 years.

Simon Roddy, chief executive of GBE-N, said: "This agreement is a landmark moment for the nuclear industry. Working with Rolls-Royce SMR, we’re bringing a significant long-term investment to the UK industrial supply chain."

"Supporting skills, innovation and growing our industrial capability is essential to this partnership, and will ensure the UK is well-placed to deliver the next generation of nuclear infrastructure."

UK Energy Secretary, Ed Miliband, added: "At a time of global instability, this is a major milestone for Britain’s energy security."

"We are backing a British company to deliver our first small modular reactors - creating a generation of good jobs, driving growth and providing clean, homegrown power for decades to come."

"Our clean energy mission is the only route to getting off the rollercoaster of fossil fuels and take back control of our energy independence."

The Nuclear Industry Association (NIA) described the announcement as "an historic step" for clean power, industrial growth and jobs in Wales.

NIA chief executive Tom Greatrex said: "It marks the beginning of a significant and exciting new phase for the project and the people of Ynys Môn."

"It allows work to begin on a project that will create thousands of jobs and attract significant investment locally and across Britain, while helping to secure the UK’s long-term supply of reliable, low-carbon power."

"Wylfa is a very special site with unique strengths, and the sector stands ready to help make the country’s first SMR fleet a success, putting Britain at the forefront of new nuclear development."

Last month, Great British Energy - Nuclear (GBE-N) signed an agreement with Anglesey Council aimed at delivering local benefits and ensuring the scheme is delivered responsibly.

On Monday, the county council said it welcomed the contract announcement as a "further step forward" for the SMR project.

Christian Branch, the council's head of economic development, said: "As the host community, Anglesey is determined to remain at the heart of discussions and decision‑making as this important project progresses."

"This announcement reinforces the potential for significant economic, social and skills‑based benefits."

"Our priority is to ensure these opportunities are maximised for Anglesey – through high‑quality local jobs, clear skills and training pathways for local people, and meaningful involvement of local and Welsh businesses in the supply chain from the outset."

"We'll also be working closely with the Welsh Government in this respect. These benefits must be embedded from the earliest stages of design, planning and delivery."

"Whilst recognising the opportunities presented, we're also aware of the potential impacts on communities, infrastructure and the environment must be carefully managed."

"Local residents, particularly those in north Anglesey, must remain central to all considerations as the project moves through design, planning, construction and operation."

He added: "We look forward to continuing our constructive partnership with Great British Energy – Nuclear, working collaboratively to secure lasting and positive outcomes that support sustainable prosperity for Anglesey and future generations."