UK Government Announces £120 Million Support Package for Ceramics Sector

The UK government has announced a £120 million package to support the ceramics sector. The funding consists of £60 million in capital grants for manufacturers to invest in new equipment aimed at improving energy efficiency and sustainability, plus £60 million to cover operational costs.

Rob Flello, chief executive of Ceramics UK, said he was "delighted" with the announcement. He described it as "a fantastic recognition of the importance of the UK ceramics industry" and noted that the organization had been asked to work with civil servants on the design and implementation of the scheme.

The sector has faced multiple challenges in recent years, including higher energy and labor costs and increased competition from overseas producers. Several companies in Stoke-on-Trent have collapsed, and Denby Pottery in Derbyshire entered administration earlier this year, resulting in the loss of more than 100 jobs.

A report commissioned by Stoke-on-Trent City Council found that the number of ceramics firms in north Staffordshire declined from 137 in 2018 to 123 in 2024. The same report noted that gas accounts for 90 percent of energy consumption in the industry, making firms vulnerable to price shocks linked to the Ukraine war.

Business secretary Peter Kyle said the funding would support thousands of jobs and help put businesses on a secure footing for the long term. Chancellor Rachel Reeves stated that the chemicals and ceramics industries underpin economic resilience and support skilled jobs across the UK.

Flello said the money would help ensure manufacturers that have operated for hundreds of years can continue for the next few hundred years, while acknowledging it was too late for some firms.