The Government has announced new funding packages to back the long-term resilience of the ceramics and chemicals sectors, worth £120 million and £350 million respectively.

The funding is targeted at strategically important parts of the economy that keep vital everyday UK infrastructure running.

The £350 million Critical Chemicals Resilience Fund will support strategically important chemicals producers and sites, strengthen critical supply chains and help support thousands of skilled jobs.

The ceramics package worth £120 million will back energy efficiency, decarbonisation and long-term competitiveness in sector vital to UK manufacturing.

The £350 million Critical Chemicals Resilience Fund will back the UK’s most strategically important chemical producers – the firms that supply the critical inputs relied on by sectors including food, energy, water and healthcare.

The fund has been designed to keep these key producers and sites competitive, put businesses on a more sustainable footing and strengthen supply chain resilience. It will be developed in partnership with industry representatives and independent experts.

The Government is also committed to driving down regulatory costs faced by the industry. We have already cut back the need for UK businesses to buy expensive and unnecessary data, cutting transition costs while maintaining health and environmental protections. We will work with the industry to identify where the UK can go further to reduce regulatory costs and remove duplicative procedures for businesses.

Chief Executive of the Chemical Industries Association Steve Elliott said:

“The Government rightly included the chemical industry as a key foundational sector in its Industrial Strategy for the country. Today’s announcement of a £350m fund to be made available to chemical businesses underpinning our critical national infrastructure and wider resilience is therefore a very welcome first step in turning those words into action.”

Much is needed – both in terms of policy and funding support - to address the industry’s energy, carbon reduction and broader regulatory costs – and the Government’s additional commitment to work in partnership with the industry to tackle those huge competitiveness challenges is also encouraging.

A separate package for the ceramics sector will include £120 million of support to back capital investment in energy efficiency and decarbonisation projects, as well as provide operational support for successful applicants to the fund who require additional support to manage increased costs.

Ceramics are not only crucial for housebuilding and everyday items like smartphone screens but also for strategic industries such as advanced manufacturing, defence and tech, backed by the UK’s Modern Industrial Strategy.

Their ability to operate at very high temperatures and resist corrosion make them vital for products from armour plates to plane engine coatings, and hip implants to space shuttle panels.

Support for the ceramics sector will be open to eligible UK manufacturers across sub-sectors including refractory products, clay building materials, household ceramics and technical ceramics.

CEO of Ceramics UK Rob Flello said:

“Ceramics UK is delighted by this landmark decision by the Government which recognises the fundamental role of our sector in the UK economy.

“Ceramics are critical to the UK economy in the manufacture of vital products such as steel, glass and other high temperature products, as well as items that are used daily in homes and businesses across the UK.”

Charlotte Brumpton-Childs, GMB National Secretary, commented:

GMB has been calling for the Government to step up support for energy intensive industry.

This is a hugely welcome step in the right direction and will be reassurance to workers in our chemicals and ceramics industry that Government is finally listening.

These announcements, targeted at longer-term economic resilience, come alongside temporary help the government has announced to support people and businesses this year.

These steps entail a near term cost but HM Treasury has confirmed that the overall package will not increase borrowing in the medium term. All costings will be subject to certification in the next OBR forecast in the usual way.