In recent days, the Mineral Products Association (MPA) said that cement production was "increasingly under threat" due to increased energy costs, regulatory costs and labour costs.
The Department of Business and Trade acknowledged the challenges facing the sector and said its industrial strategy was increasing support for energy-intensive companies, including cement manufacturers. However, the Labour government has previously pledged to build 1.5 million new homes in England by 2029 to tackle the housing crisis and boost economic growth. In addition, Chancellor Rachel Reeves committed £ 725 billion over the next decade to maintaining existing infrastructure and building new projects in a separate investment strategy unveiled in June. But just 7.3 million tonnes of cement were produced in the UK in 2024, according to the MPA, which represents manufacturers of products such as asphalt and cement. That is about half of what was produced in 1990 and comparable to what was produced after World War II when rationing was still in effect. Dr Diana Casey, executive director of the MPA, said the decline in production could undermine the government's ambitions for housing, infrastructure and clean energy projects. "You can't build a house or a bridge or a railway without us,"
she says. She added that it was a concern that production had fallen so low since 1950 that it "could affect government targets such as the planned construction of houses, hospitals and power plants". Projects such as the Sizewell C nuclear plant could require up to 750,000 tonnes of cement, while a new hospital would need nearly 8,000 tonnes,
the MPA said. A traditional four-bedroom home requires 3 to 5 tons of cement. The association said that the decline in cement production due to rising costs and changes in carbon tax policies has reduced market competitiveness and become a major concern for the industry.
In addition, the association noted that sales of cheap cement imports have almost tripled in the past 16 years, from 12% in 2008 to 32% in 2024. Dr Casey said more needed to be done to reduce electricity prices because it was having a "disproportionate impact on industry". "The UK is not competitive because of high energy costs and the regulatory burden of carbon emissions, so it is cheaper to import cement,"
she said. She called on the government to help domestic production achieve fair competition in order to cope with imported products. "We recognise the challenges facing the cement industry, which is why our Modern Industrial Strategy has increased support for energy-intensive businesses through our Super Accelerator programme, which will significantly reduce energy prices for eligible businesses," the Department of
Business and Trade said in a statement.
According to the MPA, around 40% of the UK's cement is produced in the Peak Region, with the remainder distributed across the UK. The association is concerned that jobs could be at risk and "disappear in the future" if imports increase. Rico Wojtulewicz, head of policy and market insight at the
National Builders Federation, said construction companies were facing an increasingly difficult situation as many projects stalled, leading to less demand for locally produced cement. In addition, construction costs continue to rise, driving some smaller builders out of the industry while others look for ways to save money. "They are all looking for cheaper materials," he said. Eddie Tuttle, director of policy, public affairs and research at
the Chartered Institute of Building, said that in addition to the rising cost of materials, there was a "continuing labour shortage". "This is a worrying issue at a time when the government is putting construction and housebuilding at the top of its growth plans," he noted.
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