04 Mar
Westminster Hall
North Staffordshire Ceramics Industry: Energy Costs

Overview

The Westminster Hall session on energy costs for the North Staffordshire ceramics industry highlighted urgent concerns about rising energy costs affecting this critical sector. Organized by David Williams, MP for Stoke-on-Trent North, the debate attracted both cross-party support and contributions from varied constituencies, emphasizing the wider relevance of the topic.

Key Content

  1. Economic Impact on Ceramics:
    • David Williams revealed that Royal Stafford went into liquidation, resulting in 80 job losses, highlighting the impact of high energy bills.
    • The ceramics industry, employing over 3,000 people in Stoke-on-Trent, is facing increased energy costs, affecting its global competitiveness.
  1. Call for Government Support:
    • Proposals included subsidies for smaller ceramics manufacturers' energy costs and exemptions from gas and carbon taxes.
650,000 MWh of electricity

annually used by the UK ceramics industry.

  1. Technological Emphasis:
    • The role of ceramics in various advanced sectors, such as high-tech medical equipment, was emphasized.
    • The potential for hydrogen technology to reduce energy costs for ceramics was discussed.
  1. Cross-departmental Coordination:
    • The need for collaborative efforts between the Department for Business and Trade and the Department for Energy Security and Net Zero was underlined.
4.5 million MWh of gas

consumed annually by the ceramics sector in the UK.

Outcomes

  • Confirmation from Minister Sarah Jones of ongoing discussions and potential policy reviews to address energy cost issues.
  • Commitment to examine cross-departmental solutions and potentially incorporate advanced ceramics into the industrial strategy.

Statistics

  • 200% increase in energy bills over the last decade for some ceramics manufacturers.
  • The ceramics industry accounts for 650,000 MWh of electricity and about 4.5 million MWh of gas annually.
  • Gas and electricity have increased significantly from previous years' prices, adding financial pressure.

THE DEBATE TYPE

A Westminster Hall debate allows for specific and often regional issues to be discussed in detail, offering a forum for MPs like David Williams to spotlight significant local economic concerns and push for governmental action.

300% increase

in energy costs for some ceramics companies over the last 10 years.

Outcome

The debate yielded a commitment from Minister Sarah Jones to assess the current energy cost impacts on the ceramics industry and work towards viable solutions. The discussions underscored the need for collaborative cross-departmental efforts, acknowledging the wider implications for the UK’s industrial strategy.

Key Contributions

David Williams
Labour

Introduced the topic, underscoring the impact of energy costs with Royal Stafford going into liquidation.

Jim Shannon
DUP

Drew parallels with Northern Ireland's ceramics history.

Wendy Morton
Conservative

Linked similar energy cost issues affecting brick manufacturers.

Gareth Snell
Labour

Mentioned the role of ceramic carbon filters in submarines for the UK-Australian partnership.

Sarah Jones

Acknowledged the challenges and the strategic importance of ceramics within new industrial strategies.

Original Transcript
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?

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.

The Minister for Industry
Sarah Jones
16:15

It is a pleasure to serve under your chairmanship, Sir John. I am grateful to my hon. Friend the Member for Stoke-on-Trent North (David Williams) for securing this important debate. I begin by echoing his thanks to the trade unions, the industry and Ceramics UK for all they do.

I have engaged with Ceramics UK quite a bit since taking up this role, and previously in opposition, and I work closely with the unions and the industry. My hon.

Friend clearly laid out the challenges we face, as well as the challenges facing his community’s disposable household incomes, and the importance of getting this right. He is right to look to the future of ceramics, not to the past.

There are several industries that we want to grow in the UK, but we have historically focused on the past—steel is a case in point—not the future. My hon.

Friend talks about new advanced technologies, and the important uses of ceramics in our mobile phones, our aircraft, our defence and our medical equipment are clear to see, though little understood by those outside this sector.

We can all do more to make sure people understand the ceramics industry and what it is for. The industrial strategy is one way to do that. As my hon. Friend knows, the industrial strategy is coming out in the spring.

We promised it for years in opposition, and the previous Government but one tried, but they did not persevere.

We have identified eight growth sectors within the strategy—advanced manufacturing is one of them—but foundational industries have to power those growth sectors, which is where ceramics is important. I nod to my hon.

Friend’s well-made point about defence, which is one of the growth sectors in the industrial strategy. Over the last few days, we have seen this Government’s commitment to increasing our defence spending.

The Chancellor spoke at the Make UK conference today about how we can change defence procurement to include more of this country’s SMEs. We have also been creative in using UK Export Finance to create jobs with Thales in Belfast. There is more we can do, and I will take away my hon.

Friend’s point about advanced ceramic carbon filters. I suspect there are other potential applications in this space. I acknowledge and appreciate the very real challenges that my hon. Friend raises.

The cost of energy bills is very difficult for the ceramics industry and other energy-intensive industries. Every one of us has suffered from the huge price hike after Russia invaded Ukraine, although our energy costs are not comparable with those of our neighbours. My hon.

Friend also highlighted how electricity costs so much more than gas and the challenges that will bring as we decarbonise. He mentioned the emissions trading scheme and the ongoing consultation on free allowances.

I also heard his well-made points about the low carbon transition and the challenges for sectors such as ceramics, where its up-front cost is potentially prohibitive.

Gareth Snell
16:27

Again, I am grateful to the Minister for her generosity in giving way. My hon. Friend the Member for Stoke-on-Trent North (David Williams) is right that hydrogen could be the thing that helps our industry, but electrolysis requires electricity.

Electricity generation is capped to the gas price, and therefore the gas price drives the hydrogen price. Unless there is a way of decoupling that rather difficult circuit, we will find ourselves replenishing fuel without a particular discount. Our other unique challenge, as my hon.

Friend expertly laid out, is that these factories are in communities, because that is how ceramics worked—a potbank was built and then houses were built around it.

Connecting to hydrogen would not be suitable if the hydrogen has to be contained in large towers, which are better suited to large out-of- town factories.

Although I welcome the Minister’s commitment to hydrogen, I hope she can bear those two points in mind, because ceramics are a unique challenge. However, we are willing to work with her to find a solution.

All content derived from official parliamentary records