UK cement industry urges government to prioritise British materials

The news

The UK cement industry has called on the government to prioritise British-made materials in public construction projects. The Mineral Products Association made the plea at a parliamentary reception on 30 June 2026, warning that high energy costs and carbon pricing are putting domestic producers at a disadvantage. Cement is excluded from the government’s Energy Intensive Industries compensation scheme, meaning UK producers face higher electricity costs. The MPA said UK cement was essential to delivering the country’s housing and infrastructure plans. Henry Tufnell, Labour MP for Mid and South Pembrokeshire, said cement was vital for new homes, clean energy and transport projects.

What's at stake

The UK cement sector supports thousands of jobs and supplies materials for housing, infrastructure, clean energy and transport programmes. Domestic producers operate under higher electricity costs than competitors because cement is not covered by the Energy Intensive Industries compensation scheme. The MPA has also called for continued government support for carbon capture and storage technology, which it says could cut emissions in the sector by up to 75 per cent by 2035. Prioritising British cement could protect economic security and long-term supply chains for public projects worth billions of pounds each year. However, it risks increasing costs for taxpayers and slowing delivery of housebuilding and infrastructure targets if imported alternatives are cheaper.

The case for

Prioritising British cement supports UK jobs, economic security and long-term infrastructure delivery. Domestic production ensures reliable supply for the government’s housing and infrastructure plans without reliance on foreign sources that may face their own disruptions. Continued backing for carbon capture and storage can reduce the sector’s emissions by up to 75 per cent by 2035 while keeping production onshore. This approach treats cement as strategic to the UK’s economic security rather than a simple commodity. It aligns with broader goals to deliver new homes, clean energy projects and transport upgrades using British materials.

The case against

Prioritising British cement could raise costs for public projects and slow housebuilding and infrastructure. Higher electricity prices and carbon costs already make UK cement more expensive than some imported alternatives. Forcing public procurers to favour domestic supply may inflate budgets on frameworks such as the £4.2bn Construction Professional Services 2 programme awarded in June 2026. This risks delaying the delivery of new homes and transport schemes at a time when speed is critical. Open competition for materials would help keep overall project costs down for taxpayers.

Why it matters now

A decision to prioritise UK cement would reshape procurement rules for public construction projects over the next four years. If the government accepts the MPA’s call, domestic producers could gain a stronger position in contracts tied to housing and infrastructure targets. If it does not, the sector may face further pressure from imports and rising costs. The next milestone will be the government’s response to the 30 June 2026 parliamentary reception and any updates to the Energy Intensive Industries compensation scheme.

Further reading

constructionnews.co.uk · newcivilengineer.com

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