Ceramics Industry

Harriett Baldwin Excerpts

Monday 6th July 2026 Westminster Hall

[Dame Harriett Baldwin (West Worcestershire) (Con)]

It is an honour to follow such an interesting speech about bricks. I congratulate Hayley and the other petitioners, the Petitions Committee and the hon. Member for Lichfield (Dave Robertson) for bringing this important issue into Parliament; it has been a really interesting debate. It is fair to say that the efforts of the petitioners have made sure that the concerns of workers, manufacturers, suppliers and the local communities that depend on the ceramics industry have truly been heard in Parliament.

It is clear that the ceramics sector faces several existential pressures including, in particular, high energy costs, as well as burdensome regulation and rising labour costs. We have heard a range of valuable contributions from Members, and the importance of the industry, not just in Staffordshire but in many other parts of the UK, has truly come across. I was fascinated to hear about Scotland, Cornwall and Stroud, and about a number of businesses in the ceramics sector. It was very welcome to hear from my right hon. Friend the Member for Stone, Great Wyrley and Penkridge (Sir Gavin Williamson), who made a powerful contribution on behalf of a sector in which he has first-hand experience of working.

We have learned that the ceramics industry is not simply another manufacturing sector. It is a source of highly skilled employment, a proud part of our industrial heritage and a significant contributor to our economy. For generations, the British ceramics industry has been recognised all around the world for its quality, craftsmanship and innovation, but it is clear that the industry faces particular challenges because it is particularly energy intensive. The high temperatures that kilns need mean that the industry cannot simply find, at short notice, alternative sources of energy, or switch on and off when prices fluctuate. The industry is uniquely exposed to very high energy costs, and the recent challenges facing some of its well-known firms should serve as a warning.

The supercharger scheme is a sticking plaster on the damage that has been caused by the Energy Secretary’s net zero policies, which have driven up the cost of energy and piled that cost on to businesses. The net zero costs that the Government have imposed on businesses have meant that the Government were required to introduce a £120 million subsidy for the ceramics industry.

[Andrew Cooper]

rose—

[Noah Law]

rose—

[Dame Harriett Baldwin]

I will not give way, given how tight we are for time.

I hope Members will welcome the fact that the Conservatives have a clear and credible plan to cut energy bills, reduce regulation and lower taxes. We have a cheap power plan that will cut household energy bills by £200 a year and cut electricity bills for businesses by 20%. That could save ceramics businesses a large amount of money. It would save the average restaurant £5,500 and the average pub £1,100. We would achieve that by axing the carbon tax in full, including the UK emissions trading scheme and carbon price support.

We would also scrap the renewables obligation certificate scheme, which would free up money that is currently used to fund the payments through general taxation. We would back the North sea and get Britain drilling again, unlocking home-grown energy and generating an estimated £2.5 billion in additional tax revenues each year.

[Gareth Snell]

Will the hon. Lady give way briefly on gas?

[Dame Harriett Baldwin]

I am very tight for time, but if the hon. Gentleman insists.

[Gareth Snell]

We have heard a lot from the hon. Lady’s party about its cheap power plan. Is it her intention that gas drilled from the North sea would be specifically ringfenced and sold at a below-market price to sectors such as ceramics in Stoke-on-Trent and throughout the country, so that they can benefit, or would that gas still be sold to them via the international market?

[Dame Harriett Baldwin]

It would mean we would have to import less from countries outside the UK because we would have our own supply. I do not want to intrude on arguments within the governing party, but I will call out the fact that it does not make sense to leave our own gas in the ground. The policies I have been outlining are precisely the ones that energy-intensive sectors such as ceramics have been calling for. If we are serious about protecting the British ceramics industry, we need to act now to cut the cost of industrial energy.

I will ask the Minister a couple of questions. We have heard a bit about the challenge in respect of imports, so it would be interesting to hear from him what representations the industry has made to the Trade Remedies Authority. Will the Government support the cheap power plan that would cut business energy costs, and therefore abandon the ideological policies that are driving proud sectors such as ceramics into decline? The future of a great British industry, and all the livelihoods that it supports, are too important to ignore.

[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.