CBA welcomes £350m chemicals fund, calls f…

Following sustained industry concern over a lack of meaningful support, the Chemical Business Association (CBA) has welcomed Government’s announcement of a new £350 million Critical Chemicals Resilience Fund, describing it as a much-needed step towards recognising the strategic importance of the UK chemical sector.

The funding package is designed to support strategically important chemical producers, strengthen critical supply chains and help safeguard the long-term resilience of UK industry.

The CBA, the voice of the chemical supply chain, has consistently called for greater recognition and support for the chemical industry, warning that the sector has too often been overlooked despite its essential role in the UK economy and wider industrial base.

Tim Doggett, CEO of the CBA, commented: “For too long, the chemical sector has lacked the level of recognition and support needed to maintain competitiveness and resilience. This announcement is an encouraging sign that Government is (finally) listening to industry and beginning to recognise the strategic importance of a sector that underpins almost every part of modern life and plays a critical role in the UK economy.

“We therefore welcome the introduction of the Critical Chemicals Resilience Fund and Government’s commitment to work more closely with industry on the long-term challenges facing the sector. As Business Secretary Peter Kyle said, this is about ‘giving certainty to the industries crucial to both our everyday lives and our economic future’, and that is exactly the message we have consistently been sharing on behalf of our members, the chemical supply chain and the sector as a whole.”

The fund will support the UK’s most strategically important chemical producers – the firms supplying critical inputs to sectors including food, energy, water and healthcare – and is intended to help businesses remain competitive, strengthen supply chain resilience and support thousands of skilled jobs. The scheme will be developed in partnership with industry representatives and independent experts.

Doggett added: “Government’s commitment to work in partnership with industry is encouraging. At the CBA, we have worked constructively with Government at all levels and look forward to continued discussions to help ensure this support delivers meaningful long-term benefits for the chemical sector and enables future growth, investment, innovation and sustainability across the UK supply chain.”

As part of the funding announcement, Government also reiterated its commitment to driving down regulatory costs removing duplicative procedures for businesses.

“The CBA has consistently highlighted the significant financial and administrative burden created by UK REACH, warning that businesses continue to face substantial costs and ongoing uncertainty following Brexit. While recent reforms have been welcomed as a step in the right direction, we maintain that UK REACH must remain proportionate, practical and aligned with the realities facing the chemical supply chain to avoid undermining competitiveness, trade and investment.”

He concluded: “The funding announcement is a welcome step, but it must mark the beginning of sustained action rather than a one-off intervention. Chemicals are fundamental to the UK’s industrial capability and economic resilience, with more than 96% of manufactured goods relying on chemical inputs. The Critical Chemicals Resilience Fund needs to be backed by a clear, long-term plan for delivery that gives industry certainty, maintains competitiveness and ensures investment decisions can be made with confidence.”

Alongside support for the chemical sector, the Government has also announced a separate £120 million package for the ceramics industry to support energy efficiency, decarbonisation and long-term competitiveness across UK manufacturing.