The UK government has unveiled the formation of a £350 million Critical Chemicals Resilience Fund to strengthen the nation’s essential chemicals manufacturers. This initiative seeks to assist companies in maintaining competitiveness, upgrading infrastructure, and moving towards decarbonisation and electrification of their processes. An extra £120 million will be allocated to aid the ceramics sector, underscoring the strategic significance of these industries.
UK business secretary, Peter Kyle, highlighted the importance of this financial support during times of global unpredictability, asserting that it is vital to boost Britain’s resilience and assist crucial industries, which will ultimately protect thousands of jobs and ensure long-term stability for businesses.
This announcement follows recent government efforts to aid fundamental chemical plants experiencing crises. Notably, a £150 million support package was designated to preserve the Grangemouth ethylene facility in Scotland, which became the last operational plant of its kind in the UK after ExxonMobil’s site in Mossmorran closed.
Additionally, the Ensus bioethanol facility in Teesside is poised to gain temporary government support to restart its operations. This action aims to meet the UK’s carbon dioxide needs in light of shortages caused by conflict in the Middle East. The plant had initially halted operations in autumn 2025 due to cheaper imports resulting from a UK–US trade agreement, with the government previously rejecting bailout requests from the industry.
Alongside the funding, the government is also enacting strategies to directly reduce industrial energy costs, such as exempting firms from energy bill levies. These initiatives were detailed in the UK industrial strategy introduced last year and are set to benefit around 10,000 manufacturers by April 2026, with implementation expected from April 2027.
The government plans to work closely with the chemicals sector to shape the funding support, reduce regulatory costs, and ensure that policies promote decarbonisation rather than leading to deindustrialisation. Steve Elliot, Chief Executive of the Chemical Industries Association, praised this collaboration, stressing the necessity of robust policy and funding solutions to address energy, carbon reduction, and regulatory cost issues.
Jonathan Oxley from the Confederation of British Industry and a trustee of the Royal Society of Chemistry (RSC) acknowledged the vital role of the chemicals sector in providing everyday products and supporting various other economic sectors. He welcomed the government’s backing and conveyed the RSC’s dedication to working together on developing skills for the workforce of the future.