CIA issues urgent warning to Prime Minister

The Chemical Industries Association (CIA) has issued a fresh and urgent warning to the Prime Minister, saying the measures announced do not go far enough to prevent the rapid collapse of the UK chemical sector.

In a letter sent to No. 10 on 3 March 2026, the CIA highlights that chemical output has fallen by 60 percent since 2021 and confirms at least 25 site closures across the UK, resulting in major job losses and significant damage to industrial communities. The Association says the sector is now facing what it describes as “the fight of its life” to address the immediate pressures driving businesses to close.

The CIA warns that the majority of recent emissions reductions are the result of shrinking production rather than genuine decarbonisation. The letter makes clear that the UK is “the clearest‑cut case for delivering decarbonisation through deindustrialisation,” a trend that the Association says will accelerate without immediate policy intervention.

Chief Executive Steve Elliott said the Government must act now to restore energy competitiveness, reform the UK Emissions Trading Scheme, provide clarity on UK REACH, and protect UK producers from unfair global competition. He emphasised that without decisive action, the UK risks losing a foundational industry that underpins national security, advanced manufacturing and the transition to clean energy.

The CIA has called for urgent discussions between ministers and senior business leaders to avert further decline and stabilise the industry.