Britain’s ceramics industry has secured a £120 million government support package in a bid to stabilise a sector long under pressure from rising energy costs and a wave of factory closures across Stoke-on-Trent and beyond.
The funding, announced jointly by business secretary Peter Kyle and chancellor Rachel Reeves, will be split into two £60 million streams. One will support investment in modern equipment, energy efficiency upgrades and decarbonisation efforts, while the other will help firms manage operating costs that have forced several manufacturers into administration in recent years.
Officials said the scheme will be open to companies producing refractory materials, clay building products, household ceramics and technical ceramics. Applications are expected to begin later this summer through the Department for Business and Trade.
For industry leaders, the announcement marks a turning point after years of lobbying over what they describe as an existential crisis. Rob Flello, chief executive of Ceramics UK, said the decision reflected long-standing warnings from manufacturers about the sector’s vulnerability.
He said the funding was “a fantastic recognition of the importance of the UK ceramics industry,” adding that trade bodies would now work closely with officials to shape how the money is distributed. While welcoming the support, he acknowledged that some firms had already been lost before the intervention arrived.
“We want manufacturers that have been around for the next few hundred years,” Flello said, noting that the priority now is ensuring the funding delivers practical results for remaining businesses.
The sector has been hit by steep energy costs, with gas accounting for around 90% of production energy use. Manufacturers say the volatility following the war in Ukraine exposed structural weaknesses in the industry’s cost base, while earlier government support schemes were seen as insufficient for gas-heavy production.
The impact has been visible in north Staffordshire. Research commissioned by Stoke-on-Trent City Council shows the number of ceramics firms has fallen from 137 in 2018 to 123 in 2024. Several well-known names have also collapsed or scaled back operations, including Denby Pottery and Royal Stafford, while Moorcroft was recently rescued from administration.
Iain Martin, chief executive of Emma Bridgewater, described the package as a welcome development after a difficult period for the industry. He said manufacturers had been facing sustained pressure from energy prices, labour costs and international competition, adding that several established British brands had already disappeared.
Government ministers framed the intervention as part of a broader effort to support strategic manufacturing sectors. Peter Kyle said the funding would help protect thousands of jobs and strengthen industrial resilience, while Rachel Reeves highlighted the role of ceramics and chemicals in supporting wider supply chains, including defence, aerospace and clean energy.
Despite the announcement, industry figures remain cautious. Ceramics UK is set to work with civil servants on the design of the scheme, including eligibility rules and how funds will be allocated between struggling firms and those investing for long-term growth.
While the package is seen as a significant boost, many in the sector believe deeper structural issues, particularly high industrial energy prices, still need to be addressed if the industry is to secure a sustainable future.
