Budget 2024: MPA urges Chancellor to back UK minerals industry

The Mineral Products Association (MPA) is urging Chancellor Rachel Reeves to seize the Autumn Budget 2024 as a golden opportunity to boost the economy and accelerate clean energy by supporting the UK’s minerals industry.

MPA, which represents UK producers of essential materials for construction and manufacturing, stresses that mineral products like concrete, aggregates and asphalt are key to delivering two of the Government’s core pledges – kickstarting economic growth and making Britain a clean energy superpower.

With current annual demand of 400 million tonnes of mineral products expected to increase substantially, MPA urges the Chancellor of the Exchequer Rachel Reeves to introduce policies on 30 October that will support one of the country’s essential and primarily domestic industries.

In a document submitted to the Chancellor, the MPA makes clear recommendations, including focusing the UK’s industrial strategy on foundation sectors, overhauling the mineral planning system and levelling the carbon costs between UK and overseas producers to protect competitiveness.

Whilst huge volumes of materials will be required for new homes, transport networks, energy infrastructure and climate resilience, the MPA says that meeting future demand will require the Government to take action.

The £16 billion mineral products industry is a rare example of a sector that sources, manufactures and supplies nearly all its products domestically, supporting 80,000 UK jobs. Local production is not only economically beneficial, but also more sustainable and secure than relying on imports.

While the MPA welcomes Government’s announcements on planning reforms for housing and infrastructure, it argues that the mineral planning system is also in need of a major overhaul to ensure demand for essential materials can continue to be met from sustainable domestic sources.

MPA also warns that energy intensive sectors like cement and lime are facing uncompetitive energy and carbon costs compared to overseas. Urgent measures are required to level the playing field and ensure these industries can continue to thrive while we continue to transition to Net Zero.  

Mark Russell, MPA executive director for planning, said: “The Government knows the planning system must improve; now they need to extend that to mineral planning to ensure a sustainable supply of essential minerals from domestic sources. Our proposals to the Chancellor would allow the industry to plan, invest and meet the future demand that is required to deliver Government’s housing, infrastructure and clean energy ambitions.”

Diana Casey, MPA executive director for energy and climate change, said: “A robust Industrial Strategy is critical for the UK’s cement and lime producers as they decarbonise in a highly competitive market. We need clear measures to ensure domestic producers are not at a disadvantage.”

Aurelie Delannoy, MPA economic affairs director, added: “This Budget is an opportunity to drive the energy and net zero transitions, while supporting local jobs, boosting productivity and UK growth. Poor planning has long hampered investment in infrastructure. Better long-term planning will help attract the much-needed investment into the UK minerals sector, essential for building homes, roads, and energy projects, and reduce reliance on costly and risky global supply chains."

Robert McIlveen, MPA senior director for communications and public affairs, concluded: “MPA members are essential to delivering the Government’s manifesto pledges. The Chancellor must support the domestic supply chain to deliver cost effective and sustainable materials. Our proposals are designed to help the Chancellor achieve the Government’s long-term ambitions.”

Summary of MPA recommendations for the Autumn Budget 2024

• Focus UK Industrial Strategy on essential foundation industries with potential for green growth
• Build on the planning reforms already announced for housing and infrastructure by reforming and investing in the mineral planning system
• Introduce ‘Material Supply Audits’ for major infrastructure projects
• Establish a transparent, regularly updated, consistent and digitised infrastructure pipeline process
• Specify lower carbon concretes (under BS8500) and warm mix asphalts (WMAs) as the default in public procurement
• Bring forward the UK Carbon Border Adjustment Mechanism (CBAM) to 2026 or protect from carbon leakage through free allowances in UK ETS
• Extend compensation for indirect emissions costs to cement and lime in line with other Energy Intensive Industries
• Abolish the Carbon Price Support (CPS) mechanism
• Provide clarity for industrial sites outside the track 1 and 2 CCUS clusters of future support, in particular the Peak Cluster and dispersed sites
• Implement a five-year road maintenance funding settlement for local highways authorities
• Freeze the Aggregates Levy to support wider construction and fully restore the Aggregates Levy Community Fund
• Reform Business Rates to encourage investment beyond the high street