The Chemical Industries Association (CIA) welcomed the strong focus on the UK chemical sector during a recent session of the Liaison Committee, where members questioned the Prime Minister on the pressures facing energy‑intensive industries and the strategic importance of maintaining domestic production. The discussion marked an important moment of parliamentary recognition for the challenges the sector has consistently raised with Government — recognition that must now be matched by decisive action.
The Liaison Committee brings together the Chairs of all House of Commons select committees and is the only committee that regularly questions the Prime Minister. Its scrutiny carries significant weight, shaping national debate on long‑term policy priorities, industrial capability and economic resilience. During the 23 March session, several committee chairs pressed the Prime Minister on the UK’s industrial base, with the chemical sector emerging as a central theme.
The Committee’s focus followed a letter from the Chemical Industries Association on 3 March, outlining the urgent need for competitive conditions to support the UK’s chemical manufacturing base. Members highlighted several of the sector’s key concerns, including:
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A 40% decline in UK chemical production between 2021 and 2024, driven by the energy crisis and wider economic pressures
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The industry’s critical role in underpinning national security, including defence supply chains
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The risk of the UK meeting emissions targets through deindustrialisation rather than a competitive transition
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Policy‑related energy costs making up to 60% of industrial energy bills, undermining competitiveness and investment
Bill Esterson MP pressed the Prime Minister on whether the Government would respond to the sector’s concerns and ensure that chemicals are included in wider support for heavy industry.
The Prime Minister’s Response
In his answers, the Prime Minister acknowledged both the scale of the challenge and the strategic importance of the chemical sector. He confirmed that the Government is prepared to consider targeted support and will look closely at the sector’s specific needs, recognising its importance to the wider economy. He also agreed that the UK must avoid reducing emissions through industrial decline rather than through a competitive transition, and emphasised the need to retain domestic industrial capability by working with the chemical sector and others to achieve this.
This recognition is welcome. The CIA now looks forward to seeing this acknowledgment translated into concrete measures that restore competitiveness, unlock investment and secure the long‑term future of UK chemical manufacturing. The sector has been clear about the steps needed to stabilise and grow production, and we are ready to work with Government to drive forward the practical solutions that will keep the UK at the forefront of global innovation and industrial capability.
The CIA continues to advocate for competitive energy costs, smarter regulation and a future‑ready workforce. This scrutiny by the Liaison Committee highlights the urgency of ensuring that the UK remains a globally competitive location for chemical production, and reinforces the importance of Government working in partnership with industry to deliver the conditions needed for investment, growth and long‑term sustainability.
