A number of key figures in the mineral products industry have written to UK chancellor Rachel Reeves, urging her to take action to ‘jumpstart’ construction or risk permanently losing capacity to produce aggregates, asphalt, cement, and concrete.
Described as an ‘unprecedented’ move, bosses of the UK’s leading construction materials producers have thrown their weight behind the joint message, explaining how the industry, which employs over 80,000 people, is ‘struggling badly’.
The letter illustrates how tough the UK economy has been with four years of declining sales, and outputs at historically low levels, based on Mineral Products Association (MPA) data.
“In order to protect the long-term viability of our businesses, we are facing the difficult decisions of what to cut, which sites to close, and who to make redundant,” they write. “There is a real risk that we will have to reduce the industry’s production capacity significantly in the face of the prolonged weakness of the economy.”
The consequences are not just confined to producers of mineral products, with implications also for the supply chain and wider economy. The letter explains that if production sites are forced to closed now, this would result in “a permanent reduction in the UK’s self-sufficiency in essential construction materials, hampering recovery in the short term and growth and investment into the future. It would also increase exposure to geopolitical disruption of supply of key materials essential for defence and energy infrastructure.”
The letter concludes by setting out how government can act to increase confidence, encourage investment, and stimulate growth. There are four key opportunities for immediate intervention which could have rapid economic and social benefits:
- Urgently support measures to build homes to meet demand
- Rapid public funding into infrastructure, in particular road maintenance
- Incentivise private infrastructure spending through a super-deduction
- Targeted support to reduce costs for the construction sector
MPA executive chair Chris Leese said, “We simply cannot go on like this and frankly the solutions are not that complex – they just require the chancellor to prioritise growth and take immediate action. Our industry has hit historic lows in key markets, so we need a concerted effort from those in government to make policy decisions that inspire confidence.”
The letter is signed by members of the board of the MPA:
- Mike Pearce, CEO, Breedon GB
- Bill Brett, chairman, The Brett Group
- Lex Russell, MD UK materials, Cemex
- James Day, MD, Day Group
- Simon Willis, CEO, Heidelberg Materials
- Lee Sleight, CEO, Holcim UK
- Andrew Jackson, energy strategy & transition director, Lhoist Europe
- Simon Bourne, CEO, Marshalls
- Brian Perry, MD, Morris and Perry
- Bevan Browne, MD for UK materials, Tarmac
