Government pledges £120m to support ceramics firms

The government has announced a £120m package to support the UK ceramics sector.

Rob Flello, chief executive of industry body Ceramics UK, said he was "delighted" with the news.

"It's a fantastic recognition of the importance of the UK ceramics industry, how it is both a critical enabler of other industries but also essential to everyday life," he said.

The funding includes £60m of capital funding to help manufacturers invest in new equipment to support energy efficiency and long-term sustainability, and a further £60m to cover operational costs.

Flello said Ceramics UK had been asked to work with civil servants to design and implement how the scheme would operate.

The money would support the industry to ensure it was ready for decades to come, he said.

"We've got manufacturers that have been around for many hundreds of years, we want to have manufacturers that are around for the next few hundred years," he added.

"It's really about making sure this money is spent wisely and well, and achieves the maximum potential it can.

"I'm really delighted for the industry and it's a recognition of how important our industry is.

"I can't wait to get sleeves rolled up and work out how we're going to spend it."

He conceded it was too late for some firms, but that the funding had been "long fought for" and had taken a lot of lobbying to secure.

"At a time of global uncertainty it's never been more important to ensure Britain's resilience and back the industries our country depends on," said business secretary Peter Kyle.

"This funding will support thousands of jobs and put businesses on a secure footing for the long term.

A report commissioned by Stoke-on-Trent City Council said the industry in north Staffordshire could prosper as a "highly dynamic" sector if it got the right support.

The research made clear that ceramics was a vital component for industries such as aerospace, defence, clean energy and electronics.

"The chemicals and ceramics industries underpin our economic resilience and support skilled jobs across the UK," said chancellor Rachel Reeves.

The sector has faced challenges in recent times, with several companies in Stoke-on-Trent collapsing in the midst of issues, including rising energy costs and competition from abroad.

Earlier this year, Denby Pottery in Derbyshire went into administration, citing rising energy and labour costs as the reasons.

The local authority's report, titled Ceramics Sector Assessment in North Staffordshire, warned that ceramics firms were vulnerable to "gas price shocks" as a result of the Ukraine war.

Gas is responsible for 90% of energy consumption in ceramics, the report added, meaning previously announced government support on electricity bills would only provide "minimal relief".

As a result of these difficulties, it said the number of ceramics firms in north Staffordshire had fallen from 137 in 2018 to 123 in 2024.

But despite this, the research complied by Kada and Ortus Economic Research, concluded that net company worth had increased since 2018 in advanced and technical ceramics, sanitaryware and refractory products.

In these sectors, supply chain turnover had increased by 35% between 2018 and 2024, the report added.