Government Pledges £120 Million Support for UK Ceramics Manufacturers
The government has announced a £120 million support package for the UK ceramics sector. Rob Flello, chief executive of industry body Ceramics UK, expressed satisfaction with the decision, acknowledging it as a recognition of the sector's vital role in supporting other industries and daily life.
The allocated funds comprise £60 million for capital investment, enabling manufacturers to acquire new equipment aimed at enhancing energy efficiency and long-term sustainability. A further £60 million is designated to cover operational expenditures. Ceramics UK will collaborate with civil servants to design and implement the new scheme, which is intended to secure the industry's future for decades.
Industry Challenges and Economic Resilience
Despite the positive announcement, the sector has recently experienced significant challenges. Several ceramics companies in Stoke-on-Trent have ceased operations, citing escalating energy costs and increased foreign competition. Earlier this year, Denby Pottery in Derbyshire entered administration, resulting in the loss of over 100 jobs after manufacturing ceased in April.
A report commissioned by Stoke-on-Trent City Council highlighted the vulnerability of ceramics firms to "gas price shocks" stemming from the Ukraine conflict, given that gas accounts for 90% of the industry's energy consumption. This vulnerability means previously introduced government support for electricity bills offered only "minimal relief". The report, titled "Ceramics Sector Assessment in North Staffordshire", noted a decline in the number of ceramics firms in the region, from 137 in 2018 to 123 in 2024.
However, the research, conducted by Kada and Ortus Economic Research, also indicated an increase in net company worth within the advanced and technical ceramics, sanitaryware, and refractory products sectors since 2018. Turnover in these supply chains reportedly increased by 35% between 2018 and 2024. Business Secretary Peter Kyle stated that the funding would support thousands of jobs and place businesses on a secure long-term footing, while Chancellor Rachel Reeves emphasised the industries' role in underpinning economic resilience and skilled employment across the UK.
