Spring Statement 2025: What it means for UK Manufacturing & Ceramics

Last week, Chancellor Rachel Reeves delivered the 2025 Spring Statement, presenting a complex economic landscape for the UK. While the Office for Budget Responsibility (OBR) halved the 2025 growth forecast to 1% from previous estimates, it upgraded longer-term estimates—perhaps a sign of cautious optimism for industry.

Key Takeaways for Manufacturing and Ceramics:

The statement included several key measures that directly impact our industry:

  • Planning Reforms and GDP Growth: The government anticipates that planning reforms will contribute £6.8 billion to the UK's GDP by 2030.

  • Investment in Skills and Workforce Development: A £600 million investment has been allocated to train 60,000 construction workers.

  • Energy Price and Inflation Outlook: The OBR forecasts inflation to average 3.2% in 2025 before gradually declining to 2% by 2027.

In response to the statement, Robert Flello, Chief Executive of Ceramics UK, highlighted the sector's reliance on stable energy, a skilled workforce, and broader industrial growth. "We welcome any steps toward stability and investment," he noted, "however, uncertainty remains, especially in the cost of carbon, energy pricing, and the lack of manufacturing incentives."

Building on this point, Ceramics UK calls on policymakers to recognise the substantial progress the UK ceramics sector has made in industrial decarbonisation and innovation. "Instead of penalising our industry, supportive policies are essential to enable us to thrive in a Net Zero future."

Date Posted: 31st March 2025

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