Ceramics Industry

Chris McDonald Excerpts

Monday 6th July 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

It is a pleasure to serve under your chairmanship, Dr Murrison. I thank everybody who has contributed to the debate. I am sure that those observing from the Public Gallery will have seen that there is huge support in Parliament for the ceramics industry, for its communities and for its jobs. I am grateful to my hon. Friend the Member for Lichfield (Dave Robertson) for securing the debate, and to Hayley for organising the petition. I am sure that many of the petitioners will have been following the debate and will have heard the support for the sector from Members, as well as from Ceramics UK and the GMB trade union.

There were a number of speeches on several issues, and I will endeavour to address them all, but if I could sum up the debate in one line, it was probably put most succinctly by my hon. Friend the Member for Newcastle-under-Lyme (Adam Jogee): “Thank you for the £120 million —can I have some more?” To which I have a short answer: “You’re welcome—and I want to do more.” I will talk a bit about what that “more” might be, and address some of those issues, because I do recognise that more needs to be done.

It is important to recognise the pride of the communities we have heard about, because the ceramics industry is integral to the history and heritage of so many communities throughout the country. Staffordshire is the home of the ceramics industry, but it spans the whole country: we heard that it includes the china clay pits in Cornwall and extends right up to communities in the north of Scotland. There is also a diverse range of subsectors: bricks, pipes, tiles and tableware, of course, and advanced technical ceramics, with many applications in sectors such as energy, defence, medical and technology. I am most grateful today for the application of ceramics in air conditioning filtration systems—I thank the industry for that.

The ceramics industry is represented in some great traditional and heritage tableware. It is very much possible to value things not only for their utility but for their beauty, as we heard from my hon. Friend the Member for Stroud (Dr Opher). I am quite a fan of traditional Staffordshire stoneware. I also have a very special Dunoon mug with a Union Jack on it, and I want to let those in the Public Gallery know that I use it every morning for my first cup of tea.

We heard about bricks from my hon. Friend the Member for Newcastle-under-Lyme, and from the Liberal Democrat spokesperson, the hon. Member for Maidenhead (Mr Reynolds), about the lifetime assessment of bricks. To be clear, I am very aware of the disadvantage in respect of bricks with a short lifetime assessment. I have bricks in my house that are over 200 years old and still doing sterling service. I am interested to hear more representations from Members throughout the House on that issue.

We have of course talked a lot about ceramics, but my hon. Friend the Member for Broxtowe (Juliet Campbell) made a much wider point about manufacturing in her area of the east midlands. The issues facing ceramics are also faced by manufacturing industries around the country: high energy costs, the import of cheap goods and challenges with decarbonisation. The challenges have been exacerbated by the geopolitical instability due to the invasion of Ukraine and the conflict in the middle east, which has put pressure on our energy prices.

The ceramics industry has continued to demonstrate resilience, and the people who work in the industry have demonstrated resilience, but I was very sad recently to learn of the closure of and job losses at Denby Pottery. I worked closely on that issue with my hon. Friend the Member for Amber Valley (Linsey Farnsworth), and she represented the community so well in this place. There was also the closure of a tunnel kiln at Armitage Shanks. I pass on my personal sympathies to all the workers, families and local communities that were impacted by events at those firms, as well as at Royal Stafford and Heraldic Pottery.

Manufacturing has now ceased at Denby Pottery, and the administrators were unable to find a buyer. My officials at the Department for Business and Trade worked diligently with the administrators to take the process forward. The Government’s priority now is to ensure that all affected workers are given the support they need. I commend Fran, Kate and Daizy and wish them every success with their new venture. I realise that my words may sound somewhat clinical to the workers and communities who are so rightly proud of Denby, so I want to take this opportunity to say how sorrowful I am that Denby has closed and that those workers, and others in the local community, can no longer work there. That is why I am so determined that we will fix some of the problems with the underpinning of the business environment, not only for ceramics but for other parts of industry.

So many Members mentioned the ceramic industry support scheme. My hon. Friend the Member for Amber Valley thanked many people involved in the creation of that scheme—our right hon. Friend the Chancellor of the Exchequer played such an important role—but she was not able to thank herself, so I thank her on behalf of us all. I wonder whether the scheme would have been brought forward so speedily were it not for her work. It is important to recognise the scheme as a great vote of confidence by the Government in the ceramics industry. We are determined to work with the industry to provide support with decarbonisation, and I thank all my parliamentary colleagues who have advocated for it.

A number of Members raised issues relating to the design of the support scheme. My hon. Friends the Members for Stoke-on-Trent North (David Williams) and for Stoke-on-Trent South (Dr Gardner) raised issues around eligibility, consultees and so on. I reassure them that we are determined that the scheme will have the maximum eligibility to enable firms to win support for both capital and operating expenses around their decarbonisation, and to make that decarbonisation makes sense as well.

This is perhaps an opportune time to firmly put down some of the myths around Government policy pushing up the price of electricity. Of course, that is not the case at all. After the previous Government, the UK was left in a position of high electricity costs, both for industry and for domestic consumers, because our electricity market is dependent on the price of gas.

The cheapest form of electricity we have is solar, the second cheapest is onshore wind and the third cheapest is offshore wind. That is why the Government’s clean power 2030 mission is designed specifically to give this country a strategic and competitive advantage in electricity price from the 2030s onwards. It is particularly challenging to manage the period from now to 2030, because during that period our electricity is still set to a great extent by the gas price. For economic reasons alone, and to ensure that we have a competitive business environment, we need to work through that.

[Dame Harriett Baldwin]

I want to ask the Minister about the auction price that the Energy Secretary set today for offshore wind, which I understand is £120 per megawatt-hour. That sounds very high to me.

[Chris McDonald]

This replays some of the conversations we have had on the Floor of the House. Ultimately, it is important to remember that the prices we are quoting take into account both the capital and operating costs. Our existing gas fleet would also require renewal if it was to continue beyond the mid-2030s, so there would be a capital and operating cost element for that as well.

[Noah Law]

Does the Minister share my disbelief that the Tories continue to trot out the line that the Government are auctioning off wind power at a high price, while simultaneously neglecting to mention the levelised cost of electricity for thermal power, which is at least as high but takes a lot longer to deploy? Let us bust that myth once and for all.

[Chris McDonald]

My hon. Friend put it exactly right. We need to take both capital and operating costs into account. Fundamentally, the issue comes down to a belief or view—or, in my case, looking at the economic evidence and corporate finance. Is it possible to decarbonise and reindustrialise? Yes, of course it is, and that is precisely what the Government want to do. No one in the industry is asking us to tear up climate policy—they are using the policy to invest, and have invested £100 billion since the general election on that basis.

Many people mentioned the supercharger scheme, which currently supports around 10% of the ceramics industry. Quite obviously, 10% is not 100%, but the recent uplift in the scheme to 90% compensation has benefited members. The British industrial competitiveness scheme will offer further support on advanced and technical ceramics from 2027, backdated to the current year. That will reduce electricity bills by up to £40 per megawatt hour.

[Sir Gavin Williamson]

Will the Minister give way on that point?

[Chris McDonald]

I will continue, but I will address a point that the right hon. Gentleman raised. He focused on the parts of the sector that are unable to electrify, which I am also very concerned about. Larger brick kilns and some sanitaryware items, which my hon. Friend the Member for Lichfield spoke about in relation to his constituency, are difficult to electrify. The main decarbonisation options on the table are hydrogen, or biogas —that was not mentioned today but it could be a solution—but it is important that businesses remain competitive and able to raise capital until such a time as those occur.

I reassure the right hon. Member for Stone, Great Wyrley and Penkridge that I am focused on that issue. I am not pretending that processes that cannot be electrified can be, but the policy is to electrify first, where that can happen. However, I realise that I need to work with the brick sector and others. I am also concerned about capacity utilisation in the brick sector currently, which was mentioned by other hon. Members, because that situation, of course, makes everything much more difficult.

Many people talked about international trade. I presume that all hon. Members in the room are in favour of free trade on a level playing field basis; unfair trade was what was particularly referred to. That can be an issue of energy—overseas companies having access to energy from sources that we would not use in the UK, such as Russian gas—or, as we have heard about, some have inappropriate labour practices. When the Government decide to enter into a free trade scheme and liberalise tariffs we are always cognisant of the overall economic benefit to the country but, ultimately, we want free trade.

The shadow Minister, the hon. Member for West Worcestershire, asked about interaction with the Trade Remedies Authority, which is our means of correcting that. I am incredibly keen to continue to encourage the sector to engage with the Trade Remedies Authority. If there are any difficulties with that, I want to know about it.

[Gareth Snell]

Will the Minister give way on that point?

[Chris McDonald]

I will allow one more intervention.

[Gareth Snell]

Given that the Minister asked that he be informed of problems, the investigation process for calculating injury is incredibly arduous. In the last investigation, only two companies were able to take part in the process because of the bureaucratic and cost demands placed upon them. Simplifying the process for investigation would allow more companies to participate and provide evidence, which would make the TRA’s release more in line with what the sector and economy need.

[Chris McDonald]

My hon. Friend makes a reasonable point. The Trade Remedies Authority recently took some steps to try to speed up and reduce the cost of the process, but I understand that it is particularly difficult in a sector such as ceramics, in which there are so many small businesses—often, that is where a trade association might have a role. I will continue to work with the sector to understand the issues and to help, encourage and support companies to take cases to the Trade Remedies Authority where they feel that there are unfair trading practices. My hon. Friend thanked me in his speech for engaging with his private Member’s Bill, which I assure him I will continue to do.

The ceramics industry has faced great difficulties in the business environment, as have many of our manufacturing industries. I am sure that the Government’s measures to support the business environment will also support other parts of our manufacturing sector. Just as people in the potteries are proud to be potters, so people in other manufacturing areas in the country—

[Dr Andrew Murrison (in the Chair)]

Order. The sitting is suspended for 15 minutes.

--- Later in debate ---

On resuming—

[Chris McDonald]

I will not detain Members for very much longer. Earlier, the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) mentioned the former Prime Minister Harold Wilson and the many great things he did, one of which was his extremely strong focus on British manufacturing. The hon. Member for Lichfield talked about the opportunity we now have for reindustrialisation. Unashamedly, I lay claim to having recently introduced that word into the lexicon, and I am delighted at how quickly it has caught on.

However, I hope people might follow me if I introduce a few more words: increasing British productive capacity; improving British productivity; and increasing our exports and our balance of trade to improve our manufacturing competitiveness. That way, we can reindustrialise, we can provide good jobs for working people and we can put pride back into working communities around the country. In the case of the ceramics industry, I am very much looking forward to working with parliamentary colleagues to ensure that it continues to be a great British industry into the future.