UK Ceramics Industry Faces Collapse Without Promised Government Support, Warns Portmeirion CEO
Portmeirion CEO Michael Scheepers urges Prime Minister Andy Burnham to deliver on a £120 million support package, citing rising energy costs and administrative burdens as major threats to Britain's historic pottery sector.
The future of Britain's ceramics industry is at risk, with the CEO of pottery giant Portmeirion warning that more companies could close without the immediate release of a promised £120 million government support package.
Michael Scheepers, chief executive of the Stoke-on-Trent-based company that owns brands including Spode, Portmeirion, and Royal Worcester, has called on Prime Minister Andy Burnham to "put your money where your mouth is" and provide tangible aid to the sector. Scheepers highlighted that "good intentions don't pay the energy bills" or keep businesses running.
The call for support comes amid significant struggles in the sector. The 217-year-old firm Denby entered administration in March, resulting in 600 job losses, and pottery maker Burleigh was acquired by a former Burberry executive in June. These collapses have been attributed to soaring energy prices, increased taxes, and rising minimum wages.
Scheepers is among those advocating for broader inclusion in the British Industrial Supercharger scheme, which offers relief on electricity bills and green levies. Currently, only 10 percent of the UK's 100 pottery manufacturers qualify for these refunds.
In September, Burnham stated his commitment to the "Potteries" and recognized the "crucial importance of the ceramics industry." However, Scheepers described this as a "galling statement," emphasizing the need for action over rhetoric.
"We've had lots of talk about reindustrialisation, and nothing happened," Scheepers told This is Money. "He needs to start putting his money where his mouth is and really start delivering for the sector."
Scheepers also pointed out the potential for the ceramics industry to help alleviate youth unemployment, as the production of items like mugs and plates requires manual craftsmanship rather than artificial intelligence. However, he noted that high costs and complex regulations surrounding apprenticeships are making it prohibitively expensive for companies to hire young workers. As a result, Portmeirion did not run its usual apprenticeship academy last year, which typically takes on around ten individuals annually.
He has sent a letter to the Prime Minister, inviting him to tour the factory to witness the "fantastic craftsmanship our industry inspires." The letter warns that without urgent action, Britain risks losing more heritage brands, specialized skills, and vital industrial jobs.
Historically, Stoke-on-Trent had 200 factories in the 1970s; today, approximately 30 remain, according to Historic England.
Scheepers added that high energy costs place British businesses at a significant disadvantage as they attempt to adopt cleaner technologies. He stressed that companies are willing to embrace new technology and are not simply seeking government handouts.
A government spokesperson confirmed that the £120 million fund is a key part of the plan to reindustrialize the UK and support ceramics manufacturers in modernizing, growing, and remaining competitive. Further details on eligibility and application procedures are expected before the end of the year.