What's Happening?
A government delegation visited ceramics manufacturers in Staffordshire to understand the challenges faced by the industry, particularly regarding energy costs and carbon taxes. The visit, organized by Ceramics UK, included representatives from various
government departments who met with leadership teams from companies such as Vulcan Industries, Churchill China, and Ibstock. The delegation was given factory tours to observe the industry's commitment to low carbon innovations and renewable energy. Discussions highlighted the impact of high energy costs and uncompetitive carbon taxes on the sector, which affect the competitiveness of UK-made goods compared to those produced overseas. The delegation also learned about the British Industry Supercharger scheme, which provides compensation for electricity network charges to certain industries, but excludes most ceramics manufacturers due to their reliance on gas.
Why It's Important?
The ceramics industry is a significant contributor to the UK economy, generating over £2 billion annually and employing more than 20,000 people. The challenges highlighted during the visit, such as high energy costs and limited access to compensation schemes, threaten the competitiveness of the sector. Without adequate support, UK ceramics manufacturers may struggle to compete with international counterparts, potentially leading to job losses and reduced economic output. The visit underscores the need for government intervention to ensure the industry's sustainability and competitiveness, particularly as it transitions to more sustainable energy practices.
What's Next?
The government is expected to consider the feedback from the visit and explore ways to support the ceramics industry. This may include revisiting the criteria for compensation under the British Industry Supercharger scheme and providing interim support until viable decarbonization technologies are available. The industry is also likely to continue advocating for policies that enhance its competitiveness in both domestic and global markets.
Beyond the Headlines
The visit highlights broader issues related to energy policy and industrial competitiveness in the UK. The ceramics industry's challenges reflect a need for comprehensive energy reforms that address the unique needs of different sectors. Additionally, the focus on low carbon innovations aligns with global efforts to combat climate change, positioning the UK ceramics industry as a potential leader in sustainable manufacturing.
