Ceramics industry seeks Budget help on energy and staffing costs

The ceramics industry is pressing the government for help with energy and staffing costs ahead of next week's Budget. The Chancellor will deliver the Budget next Wednesday. Firms say the sector has room to grow, but they need support to keep costs down.

At Churchill China in Stoke-on-Trent, in the heart of the Staffordshire Potteries, the company makes 14 million items of high-end tableware every year. All of the items are checked by hand, making staffing costs a major concern. The site also has four kilns that fire at more than 1,000 degrees Celsius, so energy is a large cost.

James Roper, the fourth-generation owner of Churchill China, said the business was under a lot of pressure from labour and energy costs. He said labour costs had risen by more than inflation every year, driven by increases to the minimum wage. Energy costs have also climbed, with gas prices up 50% since before Covid. He said the UK has the highest electricity prices in Europe, more than double those in the USA and China.

Despite the pressure, Roper said the future was about growth and expansion rather than survival. He said the opportunity lies in exports. More than two-thirds of Churchill China's production is sold to over 70 countries, and the company has tripled its export sales in the last 10 years. He said British ceramics are known worldwide for their heritage, quality and innovation.

Hannah Ault, president of the trade body Ceramics UK and owner of clay manufacturer Valentine Clays, said the biggest ask for small and medium-sized businesses was around employment cost rises. She said these had been quite crippling over the last few years and she hoped the Budget would not bring the 47p increase that has been mentioned. She also called for support on energy and investment, saying she needs more government help to grow her business and export.

The sector has already had some positive news. A £120 million support package was announced earlier this year, and firms will watch to see whether next week's Budget offers more. The Treasury has said it does not comment on speculation.