By Daniel Hunter
Nuclear Management Partners (NMP) is set to be stripped of its £9bn government contract to clean up nuclear waste at the Sellafield.
NMP has run the site for six years but has recently come in for heavy criticism over delays and operating over budget.
The Public Accounts Committee and the National Audit Office have both criticised the firm, but the Department of Energy and Climate Change (DECC) extended its contract by five years in 2013.
A DECC spokesperson said it "working with industry experts on alternative options".
"Ed Davey has been very clear that he's wanted to see more effective progress in decommissioning the biggest and most complex nuclear site in Europe, providing the best outcome for the taxpayer," added the DECC spokesperson.
NMP started its contract in 2008 and employs around 10,000 people at the site.
The GMB Union welcomed the decision to cancel the contract. GMB national secretary for energy, Gary Smith, said: "We said the contract should not have been extended in 2013. The government needs to be held to account. Hundreds of millions of pounds of taxpayers money has been squandered."
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