The UK ceramics industry is set to receive £120 million in government support to help manufacturers invest in energy efficiency, decarbonisation and long-term competitiveness.
The funding forms part of a wider package announced by the Department for Business and Trade and HM Treasury on 21 May, aimed at strengthening the resilience of strategically important UK industries.
While the announcement also included a separate £350 million Critical Chemicals Resilience Fund, the ceramics package is particularly significant for manufacturers operating in energy-intensive sectors, including those supplying essential products and materials into construction, housebuilding, advanced manufacturing, defence and technology.
The Government said the £120 million ceramics package will support capital investment in energy efficiency and decarbonisation projects. It will also provide operational support for successful applicants who need additional help managing increased costs.
Support will be open to eligible UK manufacturers across a range of ceramics subsectors, including:
- refractory products
- clay building materials
- household ceramics
- technical ceramics
The Government highlighted the strategic importance of ceramics to the UK economy, noting their role in housebuilding, everyday consumer products and advanced industrial applications. Ceramics’ ability to withstand very high temperatures and resist corrosion makes them vital in products ranging from armour plates and aircraft engine coatings to hip implants and specialist components used in space and technology applications.
The package is expected to help modernise an industry with deep roots in UK manufacturing and a strong regional footprint, including major ceramics communities in Stoke-on-Trent, Devon and elsewhere.
The announcement has been welcomed by Ceramics UK. Chief Executive Rob Flello described the decision as “landmark” recognition of the sector’s fundamental role in the UK economy.
CEO of Ceramics UK Rob Flello said:
Ceramics UK is delighted by this landmark decision by the Government which recognises the fundamental role of our sector in the UK economy.
Ceramics are critical to the UK economy in the manufacture of vital products such as steel, glass and other high temperature products, as well as items that are used daily in homes and businesses across the UK.
Now, working with our members as the voice of the industry, Ceramics UK looks forward to working closely with Ministers and civil servants in designing and implementing the measures outlined in the Business Secretary’s statement of intent.
Our priority is to ensure that the scheme works for all members of Ceramics UK, from the smallest ceramics companies through to the largest organisations, creating a sustainable future for our industry.
Charlotte Brumpton-Childs, GMB National Secretary, said:
GMB has been calling for the Government to step up support for energy intensive industry.
This is a hugely welcome step in the right direction and will be reassurance to workers in our chemicals and ceramics industry that Government is finally listening.
These announcements, targeted at longer-term economic resilience, come alongside temporary help the government has announced to support people and businesses this year.
These steps entail a near term cost but HM Treasury has confirmed that the overall package will not increase borrowing in the medium term. All costings will be subject to certification in the next OBR forecast in the usual way.