Peter Kyle

“I am grateful for my hon. Friend’s contribution. Of course, he is completely correct. The impact that these brands have around the world has not been made recently, and is not to be taken lightly; it has come on the back of generations of extraordinarily hard work, precision and success. That is why the industry has the global recognition that it does. We celebrate the success of the past, and the impact and importance the industry has for communities, but I recognise the contribution that it should and will make in the future as well. The businesses I mentioned will have benefited from the recent uplift to the network charging compensation scheme, which now saves eligible ceramics businesses 90% on their electricity network charges. However, the reality is that much of the sector is gas-intensive, rather than electricity-intensive, and UK gas prices are more internationally competitive than electricity prices, notwithstanding the important point that my hon. Friend the Member for Stoke-on-Trent Central made. The Department for Business and Trade intends to review eligibility for the supercharger this year, and I encourage—in fact, I implore—the ceramics sector to engage with that process. Any changes to eligibility will be subject to consultation and ministerial approval, and the Government must always bear in mind the cost of potential changes and who would pay for them. The Government are also taking wider action to support over 10,000 manufacturing businesses in the industrial strategy growth sectors, and in foundational industries that provide key inputs for those sectors, through the British industrial competitiveness scheme. Some advanced and technical ceramics will be eligible to receive that support from 2027, and it will reduce their electricity bills by up to £40 per megawatt hour. Members should not forget the announcement I made earlier this year: qualifying businesses may get a bonus covering the costs of this year, too. The Government recognise that ceramics manufacturers are still under pressure, and I have been saddened to learn of the closure of, and job losses at, iconic ceramic manufacturers in recent years, most notably at Denby Pottery. Unfortunately, manufacturing ceased there, as administrators were unable to find a buyer for the business. Officials in my Department are working with the administrators as they take their statutory process forward, and I pass on my very sincere and heartfelt sympathies to all the workers, families and local communities that have been impacted by the closure. Our priority now is to support those who have been affected. We are working across Government and with local partners and relevant agencies to ensure that support is in place for workers who have been made redundant, and for those in the wider area impacted by Denby’s administration. That includes ensuring a joined-up, local response, and ensuring that employees can access the help and assistance that is and should be available to them. It is clear that the ceramics industry faces significant challenges, but despite those, the industry has great potential to be forward-facing as we transition towards a decarbonised economy. To unlock the industry’s potential and help support ceramics firms, the Government have recently announced a £120 million ceramics industry support scheme. That is a substantial intervention, focused on the needs of the ceramics sector. The scheme will back capital investment, and energy efficiency and decarbonisation projects, as well as providing operational support for successful applicants to the fund who require additional help to manage any increased ongoing costs. Ceramics are crucial for our modern way of living, from house building to smartphone screens, from plates to planes, and from engines to mugs and space shuttles, as well as all the other products that my hon. Friend the Member for Stoke-on-Trent Central mentioned. This funding will support the industry right across the United Kingdom, including in my hon. Friend’s home city of Stoke-on-Trent. The scheme will help to modernise an industry with a proud heritage, and the Government are working closely with the industry on its design. Officials in the Department for Business and Trade are engaging broadly, including with the sector’s main trade association, Ceramics UK, and individual businesses, to ensure that the scheme truly helps the sector in the long term and secures its long-term competitiveness. We want a thriving ceramics industry that continues to provide skilled employment, supports local communities, drives innovation and remains globally competitive.”