The Government has unveiled a £470 million support package aimed at strengthening key parts of British industry, protecting thousands of jobs and boosting long-term economic resilience.
The funding includes £350 million for strategically important chemicals producers and £120 million for the ceramics sector—industries ministers say are essential to infrastructure, supply chains and national security.
The move is designed to help firms modernise, cut emissions, transition away from gas, and remain competitive amid rising global pressure and energy costs.
Business Secretary Peter Kyle said: "At a time of global uncertainty it’s never been more important to ensure Britain’s resilience and back the industries our country depends on, and this funding will support thousands of jobs and put businesses on a secure footing for the long term.
"This is what a strategic state looks like: acting swiftly with targeted support in the national interest and giving certainty to the industries crucial to both our everyday lives and our economic future.”
Chancellor of the Exchequer Rachel Reeves said: "The chemicals and ceramics industries underpin our economic resilience and support skilled jobs across the UK.
"We have the right economic plan. It includes backing those workers, backing the communities that depend on them, and backing British industry for the long term.”
At the centre of the package is a new £350 million Critical Chemicals Resilience Fund, targeted at producers supplying essential inputs to sectors including food, energy, water and healthcare.
The Government says the fund will strengthen supply chains, improve competitiveness and support decarbonisation, while also working with industry on reducing regulatory costs and tackling unfair trade practices.
Ministers also plan to convene industry leaders to explore potential trade defence measures, as well as streamline rules and reduce compliance burdens for firms.
Steve Elliott, Chief Executive of the Chemical Industries Association, welcomed the move.
“The Government rightly included the chemical industry as a key foundational sector in its Industrial Strategy for the country. Today’s announcement of a £350m fund to be made available to chemical businesses underpinning our critical national infrastructure and wider resilience is therefore a very welcome first step in turning those words into action.
"Much is needed – both in terms of policy and funding support - to address the industry’s energy, carbon reduction and broader regulatory costs – and the Government’s additional commitment to work in partnership with the industry to tackle those huge competitiveness challenges is also encouraging.”
A separate £120 million ceramics package will support energy efficiency upgrades, decarbonisation projects, and operational costs for eligible manufacturers across subsectors including refractories, building materials, household ceramics and advanced technical ceramics.
The sector—central to industries ranging from housing and defence to aerospace and medical technology—is expected to benefit from targeted investment aimed at modernising production and securing long-term viability.
Ceramics UK CEO Rob Flello said: "Ceramics UK is delighted by this landmark decision by the Government which recognises the fundamental role of our sector in the UK economy.
"Ceramics are critical to the UK economy in the manufacture of vital products such as steel, glass and other high temperature products, as well as items that are used daily in homes and businesses across the UK.
"Now, working with our members as the voice of the industry, Ceramics UK looks forward to working closely with Ministers and civil servants in designing and implementing the measures outlined in the Business Secretary’s statement of intent.
"Our priority is to ensure that the scheme works for all members of Ceramics UK, from the smallest ceramics companies through to the largest organisations, creating a sustainable future for our industry.”
GMB National Secretary Charlotte Brumpton-Childs said: "GMB has been calling for the Government to step up support for energy intensive industry.
"This is a hugely welcome step in the right direction and will be reassurance to workers in our chemicals and ceramics industry that Government is finally listening.”
The measures come as part of a broader industrial strategy focused on long-term economic stability, with ministers signalling further interventions may follow.
