British Industry Supercharger: Ceramics

Opened the debate

The MP declares his interest as a member of the GMB trade union and chair of the all-party parliamentary group for ceramics. He praises the £120 million support provided by the Business Secretary, which is crucial to protect jobs, safeguard manufacturing, and ensure a viable future for the sector. The ceramics industry employs 20,000 people and generates around £2 billion in revenue annually, with £600 million worth of exports. He emphasises the importance of procurement rules geared towards supporting domestic manufacturing, such as insisting that homes built using Homes England money use bricks from British manufacturers. Snell highlights the sector's role in defence, including filtration systems for nuclear submarines and ceramic coatings for small modular reactors. He raises concerns about high gas costs, estimated at three times what it was in 2019, and suggests electrification as a solution, though acknowledges higher electricity prices compared to European counterparts. The MP advocates for the inclusion of ceramics in the supercharger scheme and expresses disappointment that not all sectors are included.

Government Response

The Minister acknowledges the importance of ceramics to many communities, particularly in Stoke-on-Trent and manufacturing heartlands. He explains that the British industry supercharger was designed to support industries prone to carbon leakage due to high electricity costs faced by UK businesses. Some ceramics firms receive this support, comprising around 10% of the industry. The Minister highlights the uplift to the network charging compensation scheme, saving eligible ceramics businesses 90% on their electricity network charges. He outlines plans for a review of eligibility for the supercharger and engagement with the sector during this process. The Government are taking wider action through the British industrial competitiveness scheme to support over 10,000 manufacturing businesses, including some advanced and technical ceramics from 2027 onwards. The Minister expresses sadness at recent closures like Denby Pottery but reassures that officials are working closely with relevant agencies to provide necessary support for affected workers and communities. He emphasises the potential of ceramics to be forward-facing in a decarbonised economy, noting the £120 million ceramics industry support scheme aimed at backing capital investment, energy efficiency projects, and operational support for successful applicants. The Minister concludes by thanking Snell for securing this debate and recognising the resilience and innovation demonstrated by the ceramics sector despite challenging conditions.