National trade body Ceramics UK today said ceramics manufacturers in Staffordshire have been left facing gaps in energy support after an “underwhelming” Budget.
The organisation said opportunities to support the sector had been missed despite the Chancellor’s stated ambition to “re-industrialise Britain”.
Its concerns centre on eligibility for energy cost relief and cuts to industrial decarbonisation funding, with implications for the competitiveness of manufacturers across Stoke-on-Trent and the wider county.
While the Budget included increased relief on electricity costs through the British Industrial Competitiveness Scheme (BICS), Ceramics UK said there was no announcement extending eligibility to ceramics manufacturers currently excluded from the scheme.
The industry relies heavily on gas as well as electricity, leaving many producers exposed to energy costs without access to the support available to other manufacturers.
Ceramics UK chief executive Rob Flello – a former Labour MP – said: “This was an underwhelming Budget with missed opportunities to support a cornerstone industry.
“Ceramics is at the very heart of industrial Britain, with many vital products and components made within the sector needed for the production of crucial materials such as glass and steel.”
The trade body also raised concerns about cuts to funding for carbon capture, usage and storage and hydrogen. It said some decarbonisation technologies were not yet cost-competitive, while European industrial operators could access EU funding to support investment.
Flello said: “It is disappointing that many energy-intensive ceramics manufacturers remain ineligible for the BICS and the British Industry Supercharger and this is compounded by cuts in funding for carbon capture usage and storage as well as hydrogen, which are not cost-competitive technologies.
“This was a missed opportunity to recognise the role of ceramics and the UK’s gas-intensive industries, and concerns remain that, without the right support there could be a risk of decarbonisation through deindustrialisation.”
There was a cautious welcome for the Your First Home loan scheme for first-time buyers, although the organisation warned that uncertainty over eligibility could delay purchasing decisions and affect housebuilders.
Flello added: “The Your First Home loan could be helpful if it is implemented in the right way.
“Many potential buyers will now wait to see if they are eligible for the scheme before deciding on a purchase, which could cause a problem for housebuilders in the short term.”
