North Staffordshire Ceramics Industry: Energy Costs

David Williams Excerpts

Tuesday 4th March 2025 Westminster Hall

[David Williams (Stoke-on-Trent North) (Lab)]

I beg to move,

That this House has considered energy cost support for the ceramics industry in North Staffordshire.

It is an honour to serve under your chairmanship, Sir John, and I am grateful that this topic has been selected for debate today. I am also delighted to be joined by my fellow Stoke MP, my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell), and I thank all other hon. Members in attendance today. This is a city-wide and a nationwide debate, and it is critical that we speak with one voice on the issues, to support the industry as much as we can.

Now is the time to act. It was only last month that Royal Stafford, a ceramics firm in my constituency, went into liquidation after nearly 200 years of making fine pottery. That was a devastating blow for our local economy; more than 80 people lost their jobs, and it highlights the real urgency of today’s debate. What happened at Royal Stafford should not have happened, and it should not have happened to all other companies over the years. We must fight for our pots.

I would like to place on record my thanks to Colin, Sam and the wider GMB union for stepping up to support want to pay tribute to the ceramics companies that operate in my constituency of Stoke-on-Trent North—Moorcroft, Burleigh, Steelite, Moorland and Churchill, to name only a few—and I thank Rob Flello and Ceramics UK, who have campaigned tirelessly on behalf of the sector.

The ceramics industry is integral to our story as a city—hence our “Potteries” name—and today, in our centenary year, it still employs more than 3,000 people, exporting our fine products all around the world. We cannot afford to lose those jobs, nor the skills of our workforce. Already, in Stoke-on-Trent, disposable household income sits some £5,000 behind the UK average, according to the latest Office for National Statistics data. Over the years we have lost our pits, and we cannot afford to lose any more of our pots. Our ceramics companies must remain a focus of economic growth and industry for our city.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this debate forward. He is absolutely right to highlight the issue of the ceramics industry. Similarly, in Northern Ireland, we have Larne, Belfast and Londonderry, which also have a very rich history in ceramics. In terms of education—to help the hon. Gentleman if I can—Ulster University in Belfast has helped to develop new advancements in the ceramics field. There is much more that can be done. There is a future for ceramics—that is the point I am trying to make. Does the hon. Gentleman agree that more could be done in education to encourage more young people into the field, if there was a vision—and an opportunity—for the future?

[David Williams]

I thank the hon. Member for Strangford (Jim Shannon) for attending my first Westminster Hall debate. As always, he raises some important points. I remember the old days of Stoke, when we actually had bottle kilns attached to our local schools, giving people their first opportunities to learn a skill. Sadly, those have all gone, but the point about getting people interested in the sector and learning skills is a valid one.

I am delighted that last year Stoke-on-Trent was awarded world craft city status for our ceramics heritage. Many people will be familiar with our household names in tableware. I have spoken before about our “turnover club”, where people pick up the plates and look at their provenance. I have explained in the past that my mum and my grandad worked in the potbanks of Tunstall and Burslem—namely, at H&R Johnson and Dunn Bennett & Co.

However, many people do not realise that ceramics shape every aspect of our lives. Ceramics companies manufacture the clay bricks, roof tiles and pipes that we need for our homes.

[Wendy Morton (Aldridge-Brownhills) (Con)]

There is another sector alongside pots and roof tiles: bricks. I wanted to come in on that point as the Member for Aldridge-Brownhills. We have Ibstock—looking to the future, a huge amount of investment is going into the Ibstock factory in Aldridge—and Wienerberger. I think one of the challenges—the hon. Member may agree with me—is that this sector is really impacted by energy costs, so we have to continue to look at how to support the energy-intensive sector in every way we can, because this is the future.

[David Williams]

I thank the right hon. Member for those comments. I know that she has spoken passionately about this matter in the past, and I will come on to the point about the need to support companies with their energy bills.

I was talking about how ceramics have an impact on our everyday life. Without refractories, we would not have the ability to make steel, glass and other high-temperature products. Without ceramics, we would have no cars, no buses and no mobile phones—what a scary idea. Without advanced ceramics, we would have no aircraft, defence or medical equipment.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

I thank my hon. Friend and constituency neighbour for giving way. Like me, he will have heard that advanced ceramics carbon filters are going into submarines being built not just for the UK, but for the Australian navy. With the commitment that this Government have rightly made to huge increases in defence spending, perhaps he will allow me to join him in suggesting to the Minister that one way we could help the entire ceramics sector is by redirecting some of that commitment to defence spending to ensure that those ceramic component producers get the help and support they need right now.

[David Williams]

I thank my hon. Friend and constituency neighbour for that intervention. I could not agree more; I am certain that the Minister will have heard those comments and I wholeheartedly support them.

Of course, we would be eating and drinking from wooden bowls and cups without the beautiful tableware that we enjoy—including, as I have said, many of the plates, cups and saucers we see here across the Westminster estate. The world as we know it simply would not exist without ceramics. I urge the Government to recognise that the UK ceramics industry is a critical enabler of the UK economy—used, as we have said, from building homes to high technology to steel making.

However, I repeatedly hear concerns from companies regarding their sustainability following dramatic increases in their energy bills. For energy-intensive industries such as ceramics, energy cost pressures are significant. In fact, I have heard from companies in my Stoke-on-Trent North constituency that their energy bills have trebled. One company told me that it has seen energy bills increase by 300% in 10 years. The sector was hit hard by the energy crisis, and inaction left us too dependent on tyrants such as Vladimir Putin. That has had a huge impact on both production and raw material costs, and support is urgently needed to protect these businesses. Sadly, some employers across our city are already making redundancies due to escalating costs, and that disturbing trend will only be exacerbated by inaction.

It takes a vast amount of heat to produce the kind of ceramics products we make. According to Ceramics UK, the UK ceramics industry uses about 650,000 MWh of electricity and about 4.5 million MWh of gas every single year. With gas currently costing about £47 per megawatt-hour and electricity in the region of £297 per megawatt-hour, the costs quickly add up. When we consider that gas used to cost about £11 per megawatt-hour, the impact on those businesses is clear to see.

Of course, a significant portion of those costs comes from non-commodity taxes and levies. Many ceramics companies pay high carbon taxes under the UK emissions trading scheme and ever-tighter restrictions on free allowances are pushing up costs even more. Because the industry is gas intensive, while still using a lot of electricity, very few manufacturers receive the energy-intensive industries exemption.

I am really proud that this Government take the climate crisis so seriously. A move towards green energy is desirable; if we can get to that point, wonderful. However, the reality at the moment is that companies face significant bills. That is a fixed cost that the companies cannot do anything about, and moving towards low carbon is not always straightforward. It is absolutely right, as I said, to push towards a clean energy transition, but energy-intensive industries need a higher level of support in switching to low-carbon methods. The technology to switch from gas to electricity firing is not readily available for many ceramics manufacturers, and connections to the grid are poor.

Some European countries are already taking action and have been for some years to support their ceramics sector. The European Commission recently unveiled its affordable energy action plan, which includes investing in liquefied natural gas projects to help companies to lower their costs. A number of other countries are also helping their energy-intensive industries. It is vital that the UK follows suit.

The history of our city is one of hard-working people. The ceramics industry is in our DNA. If we fail to act now, we risk losing not only the unique skills that, as we talked about before, have been honed in the Potteries for hundreds of years, but the communities formed around them. I have questions for the Minister, but I start by thanking her for agreeing to meet me, my parliamentary colleagues, Ceramics UK and the GMB union to discuss the technical details around the support the sector needs.

As a starter, however, following my discussions with Ceramics UK, the sector would like the Minister to consider the merits of offering subsidies for smaller manufacturers’ energy costs. Indeed, Ceramics UK has told me that the cost pressures can be up to six times greater than they were in 2021. For the manufacturers that can use electricity, eligibility for the Government’s energy-intensive industries exemption scheme could be opened up for all UK ceramics manufacturers, including by removing the UK business level test. The Government could also mandate priority grid connections.

For ceramics manufacturers unable to switch from gas, could the Minister consider exempting the sector from new taxes and levies on gas, in recognition of the limited alternatives currently available? Ceramics really is the hardest of all energy-intensive industries to decarbonise. Although Great British Energy will reduce energy bills in the long term, failing to reduce energy costs for the sector now could put our ceramics industry at further risk, and that is simply not acceptable.

With carbon taxes hammering the sector, I also ask the Minister to consider the merits of introducing a temporary exemption from the UK emissions trading scheme for UK ceramic manufacturers until an effective carbon border adjustment mechanism is up and running and ceramics manufacturers can apply for CBAM phase 2.

Something that might also be of great help to our wonderful small and medium-sized enterprises in the sector would be the provision of ultra-low interest loans to help to finance more energy-efficient kilns, dryers and related equipment. Hydrogen presents an opportunity for the sector to decarbonise: Ceramics UK recently unveiled a custom-built pilot kiln that runs on hydrogen. Will the Minister evaluate the hydrogen supply chain and market currently available to the ceramics industry, and how that can be better distributed? I also ask the Minister that, as we discuss the support the sector needs, the Department for Business and Trade work collaboratively with colleagues in the Department for Energy Security and Net Zero, among others, to find a solution on a cross-departmental footing.

Without a desire to move away from the topic of energy costs, it would be remiss of me not to point out one further concern that the sector often raises with me and my colleagues. Counterfeit back-stamping of tableware products from the likes of China is affecting our UK businesses. Although I appreciate the Government’s efforts to regulate against those products through anti-dumping regulations and anti-dumping duty, I am concerned that many of those products slip through the net. The fake products get listed on internet sites, so I ask for a cross-departmental approach to review tabling offences and the classifications for importing counterfeit tableware products.

I thank the Minister for coming to answer my questions, and I invite her to visit my constituency of Stoke-on-Trent North so that she can see just how brilliant our potbanks are and how important they are to our local economy and people. We must keep those pots open and those kilns fired. The time to act is now.

Budget Resolutions

David Williams Excerpts

Wednesday 6th November 2024 Commons Chamber

[David Williams (Stoke-on-Trent North) (Lab)]

Thank you, Madam Deputy Speaker. I am really pleased to follow the excellent maiden speech by my hon. Friend the Member for North Ayrshire and Arran (Irene Campbell), and I look forward to many more such speeches as the afternoon goes on.

It is an absolute honour to represent Stoke-on-Trent North and Kidsgrove, an area that has made me who I am. I am also proud to speak in this incredibly important debate. This Government take seriously the need to boost household incomes and to lift families out of poverty. I am delighted that the increase in the national living wage outlined in the Budget will put an extra £1,400 in the pockets of thousands of workers across Stoke-on-Trent and Kidsgrove.

In memory of Sharlotte-Sky Naglis, I would like to thank my predecessor, Jonathan Gullis, who campaigned to change the law to allow blood samples to be tested without consent where loss of life has occurred following dangerous driving. I said to Sharlotte’s mum last week, “I will continue to fight for this critical legislation, though I know nothing can make up for the loss of your child.”

I will also say thank you to Baroness Anderson, who put the national scandal of holiday hunger firmly on the radar during her time in this House. So many children up and down our country are now fed during school holidays.

I did not set out to become an MP. After studying at Keele University—one of our two great local universities—I worked in a local Sure Start centre. I saw how mums had been let down by the state, but I also saw how, with a hand up from the new Labour Government at the time, they were able to get back on their feet. I then worked for the YMCA, where we set up training schemes, secured funding to reopen youth clubs that were closed under austerity, and supported young people into affordable housing.

However, 14 years of Conservative Government left our services on their knees and levelling up was a failed promise. We faced a 97% cut in spending on youth services in my constituency alone. Our Sure Start centres were hollowed out. Annual household incomes have fallen behind rising living costs. Indeed, in some areas of my constituency as many as two thirds of families live in poverty and weekly earnings are some £100 lower than the England average.

I put myself forward to be an MP to break this cycle of broken promises. Our young people locally should not feel they need to move away for well-paid work. I want our families to live in affordable, decent homes, and I want high-quality care for everyone who needs it—real investment, high-quality public services, restoring hope to our people.

My dad once told me, “People like us don’t become MPs.” While, thankfully, he was wrong, because I am here today, many people still believe that where we are born will forever dictate our life’s direction. That is why I am a member of the Labour party, because we believe that everybody, no matter where they are from, should have equal access to opportunities.

I am incredibly proud of my background. My mum and my grandad worked in our local potbanks—H&R Johnson, Richard Tiles and Dunn Bennett and Co. My mum and dad met in the old Adulte ballroom in Burslem. My weekends as a child were spent at Burslem and Tunstall markets, playing out in Tunstall park—after mass, of course—and doing our weekly shop in the Normid hypermarket in Talke Pits. Having worked locally for over 20 years, I know how blessed we are to have so many local people, charities, businesses and faith groups that provide vital support to our community. Whether it is the Chell Area Family Action Group, Middleport Matters, the Hubb Foundation or excellent community organisers like June Cartwright, Anne Marie and Colin, or Mark Porter, I am so grateful for the contributions they make to our towns.

Our history is one of hard-working people, from the potters and the miners, who powered us through the industrial revolution, to the public sector workers who care for us and the business owners who create opportunities for our community. Our history is forged by our people, who have contributed enormously to our local economy and the success of our country: Reginald Mitchell, from Butt Lane, the engineer behind the Spitfire, which helped lead us to victory in the second world war; Clarice Cliff, a pioneering potter who took on a male-dominated industry to make a name for herself; and A. R. Wood, our best-known architect, who created some of our most beautiful buildings including the Burslem school of art and the Queen’s theatre.

These buildings, and our many other historical sites, are ready to have new life breathed into them. We need new spaces for small businesses and new homes for our families, and I want to see our history build our future. In my constituency, we are proud of our past and ambitious for our future, and I know that ambition will be matched by our new Labour Government.

Traces of our proud history can be found in our bottle kilns; whether Moorcroft Pottery in Cobridge or Moorland Pottery in Burslem, it fills me with pride to see the flames of our history continue to burn in these modern times. And I am part of what we call “the turnover club”, and I have attracted some bemused looks as I walk around the cafés in Westminster and lift each plate, bowl and saucer to see where it was crafted; I am pleased to see that so many were made at the Steelite factory in Burslem or at Churchill in Sandyford. I am so proud that my constituency continues to lead the way in ceramics production.

Finally, I would like to pay tribute to my friend and predecessor, Joan Walley, who represented Stoke-on-Trent North for 37 years. Joan truly embodies what it means to be a good constituency MP. In her maiden speech she spoke eloquently about the quality of housing. Her fight for improved living standards continues to this day, and I am incredibly proud to be a part of a Labour Government who have delivered their commitment to working people through their first Budget in 14 years.

[Madam Deputy Speaker (Caroline Nokes)]

I call Charlotte Cane to make her maiden speech.