Good engagement with government but further clarification and progress needed 

Breedon Group (‘Breedon’ or ‘the Group’), a leading vertically-integrated construction materials group in Great Britain, Ireland and the United States, today announces an update to its Back British Cement campaign, which was launched in January this year to make the case for urgent action to secure the future of domestic cement production.

We were pleased to hear the new Prime Minister highlighting the importance of supporting British industry in his recent Downing Street speech, and the new Chancellor’s call for “Buying British by design”.

Cement will also be crucial to delivering the new PM’s growth agenda, including the new council homes he has promised, alongside private homes and nationally significant infrastructure. Breedon supplies around two million tonnes of cement annually from our UK and Irish operations, and is embedded in communities across Britain, supporting more than 4,000 jobs across 350 sites.

However, UK cement production is now at its lowest level since 1950. Domestic producers face structurally uncompetitive industrial electricity costs and uneven carbon regulations compared to foreign importers – often from jurisdictions with weaker climate commitments than our own – which now account for more than a third of UK cement sales.

Since launching our Back British Cement campaign in January, we have engaged with Government and in particular DESNZ, DBT and HMT. These discussions are ongoing, but we still need further clarification and progress across the following areas:

• CBAM and carbon leakage: Strengthen the UK CBAM ahead of its implementation in January 2027 by publishing implementation and methodology details as early as practicable, and ensuring imported cement faces equivalent carbon costs to UK producers.
• UK-EU carbon alignment: Continue work to align UK and EU carbon pricing and ensure the two CBAM schemes operate coherently, reducing unnecessary trade friction.
• Energy costs and industrial competitiveness: Include cement within industrial electricity compensation schemes, helping to address high power costs that hold back competitiveness, investment and growth.
• "Buy British": Build on the Government's new procurement reforms by explicitly recognising cement and concrete as strategic materials that support British jobs, skills and supply chains across the UK.
• Industrial decarbonisation: Accelerate support for carbon capture, fuel switching and other low-carbon technologies that enable British cement manufacturers to decarbonise production while remaining globally competitive.

Rob Wood, Chief Executive of Breedon said:

“Our Back British cement campaign advocates for a level playing field for the domestic cement industry, including effective carbon border measures, to support UK construction, economic growth and national resilience. We believe domestic cement producers should be allowed to compete fairly with overseas manufacturers, who do not face the same high energy prices and carbon taxes.”

Mike Pearce, Chief Executive of Breedon GB said:

“Without urgent action to address industrial electricity cost disparities and uneven carbon frameworks, the dependence on imported cement – often from jurisdictions with weaker carbon regimes – will accelerate, whereas a robust British cement industry has the opportunity to be a global exemplar for greening heavy industry. Procuring more British cement for government backed projects, whether infrastructure or housing, rather than imports, can also make a significant difference to job security and supporting communities across the country.”

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