Key figures in the UK mineral products industry have written a joint letter to the Chancellor of the Exchequer Rachel Reeves, imploring her to take action to revive UK construction.

In an unprecedented move, bosses of the UK’s leading construction materials producers have thrown their weight behind a no-nonsense message to the Chancellor explaining how the industry, which employs over 80,000 people, is “struggling badly”. In the letter they set out their fears that without urgent action to jumpstart construction, the UK will permanently lose capacity to produce aggregates, asphalt, cement and concrete.

The letter illustrates just 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.  Beyond the numbers, the industry spells out the consequences in terms of job losses, site closures and the threat to yet another UK foundation sector.

“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.”

And the consequences are not just confined to producers of mineral products, with long-term implications 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 to address what has become a “dire situation”. There are four key opportunities for immediate intervention which could have rapid economic and social benefits:

1. Urgently support measures to build homes to meet demand
2. Rapid public funding into infrastructure, in particular road maintenance
3. Incentivise private infrastructure spending through a super-deduction
4. 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, Managing Director UK Materials, Cemex
• James Day, Managing Director, 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, Managing Director, Morris and Perry
• Bevan Browne, Managing Director for UK Materials, Tarmac

Ends.

About the Mineral Products Association:

The Mineral Products Association (MPA) is the trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries. MPA is the sectoral voice for mineral products, covering 100% of UK cement and lime production, 90% of GB aggregates production, 95% of asphalt and over 60% of ready-mixed concrete and precast concrete production. In 2021, the industry supplied £22 billion worth of materials and services to the Economy. It is also the largest supplier to the construction industry, which had annual output valued at £178 billion. Industry production represents the largest flow of materials in the UK economy and is also one of the largest manufacturing sectors.

For media enquiries, contact Robert McIlveen at: Robert.McIlveen@mineralproducts.org