After years of quiet depression in Stoke-on-Trent, the kilns finally have something to celebrate. The government has unveiled a £120 million support package for the UK ceramics industry, ending a long-running lobbying campaign by manufacturers and trade associations that had warned one of Britain’s oldest industries was being allowed to slip.
The funding, announced by business secretary Peter Kyle and chancellor Rachel Reeves, is split evenly: £60 million in funding to help manufacturers invest in new equipment, energy efficiency and decarbonisation, and another £60 million to ease the punishing operating costs that have brought a few household names to their knees. Eligible firms in all refractory products, ceramic building materials, household ceramics and technical ceramics will be able to apply when the program opens later this summer, according to an official announcement by the Ministry of Business and Trade.
For Rob Flello, chief executive of trade association Ceramics UK, the package vindicates a campaign that has sounded like it was shouting for nothing. He said he was “very pleased” with the decision, calling it “a wonderful recognition of the importance of the UK ceramics industry,” and confirmed that Ceramics UK had been asked to work directly with civil servants on the design and delivery of the scheme.
“We have manufacturers that have been around for hundreds of years,” added Flello. “We want to have manufacturers around for the next few hundred years. It’s about making sure that this money is used wisely and appropriately, and reaches the greatest potential.”
He acknowledged that the funding had come too late for some companies, but said it had been “a long fight” and showed hard-earned success after ongoing compensation.
A sector that has been hit by every wind imaginable
The relief, though great, is reaching an industry hit by unusually brutal pressure. Gas makes up about 90 percent of the energy used in ceramics production, a structural dependency that has left the sector painfully exposed to the price shocks caused by Russia’s invasion of Ukraine. Previous government support aimed mostly at electricity bills, manufacturers complain, has provided little help.
That frustration has been simmering for a long time. Earlier this year, the trade union GMB publicly criticized the design of the British Industrial Competitiveness Scheme, saying that ceramics and brick-making were neglected because of electricity-intensive industries – which are thought to have fueled the push for a new campaign.
The devastation of the past few years is visible across Staffordshire in the north. The number of ceramics firms in the area has dropped from 137 in 2018 to 123 in 2024, according to a study commissioned by Stoke-on-Trent City Council and compiled by Kada and Ortus Economic Research. Denby Pottery in Derbyshire went into administration earlier this year, citing rising energy and labor costs; production at the site ceased in April with the loss of more than 100 jobs. The Royal Stafford has also fallen. Moorcroft, a Stoke-on-Trent producer, only survived after being rescued by the grandson of its founder last year.
Iain Martin, chief executive of Emma Bridgewater, whose business has made a £1.4 million loss due to rising input costs, described the announcement as “good” after so much bad news.
“We are very grateful for any support we can get,” she said. The industry, he added, has faced “very severe headwinds in the last few years” in terms of energy costs, labor costs and competition from overseas. “This shows welcome support from the government, which I think the whole industry will greatly appreciate.”
He noted that “important British brands” had “fallen” in recent times. “There are 120 species left and we have a future,” he said. “The money will not come very soon.”
Why is Whitehall blinking
The political calculations behind the funding are not difficult to read. Rachel Reeves and Peter Kyle developed the plan as part of a wider commitment to strengthening the economy and protecting the industrial base that supplies the most important sectors.
“At a time of global uncertainty it has never been more important to ensure Britain’s resilience and restore the industries our country relies on,” Kyle said. “This funding will support thousands of jobs and put businesses in a secure position for the long term.”
Reeves echoed this point, noting that “the chemical and ceramics industries underpin our economic resilience and support skilled jobs across the UK.” The wider announcement also included £350 million for the chemical sector, reflecting the Treasury’s concern that Britain’s energy production is quietly losing out to European rivals.
A study commissioned by Stoke-on-Trent City Council makes the case unequivocally: ceramics are a “vital part” of supply chains across aerospace, defence, clean energy and electronics. Advanced and technological ceramics, sanitaryware and refractory products have seen the company’s value increase since 2018, and supply chain profits have increased by 35 percent between 2018 and 2024 – a reminder that, well supported, this is far from a sunset industry.
The campaign to secure support has extended beyond Westminster. The GMB has pushed trustees to exhibit UK pottery in British parliament houses around the world, a soft power move that has made the union’s plight a political issue.
What happens next
Attention now turns to the details. Flello and Ceramics UK will spend the coming weeks working with officials on the application process, eligibility criteria, and how the £60 million pot will be split between firms making long-term investments and those trying to keep the lights on.
The attitude among producers remains cautious. Few in Stoke-on-Trent believe that £120 million alone solves a problem that has been a generation in the making, and structural questions about the UK’s industrial gas price remain unresolved. But for the first time in several years, the country’s ceramics industry has reason to believe it has been heard.
“I am very happy with this field,” said Flello. “I can’t wait to roll up my sleeves and see how we can use it.”
