Housebuilding Targets at Risk without Energy Support for Brick Manufacturers

Why It Matters

Without energy support for brickmakers, the UK risks missing its house‑building targets and losing thousands of skilled manufacturing jobs, undermining Labour’s growth agenda.

Key Takeaways

• BICS excludes brickmakers despite their high energy intensity
• Brick sector supports over 10,000 UK jobs
• Energy‑price spikes cut brick output and raised inventories
• Labour’s 300,000‑homes‑per‑year goal hinges on brick supply
• £300 million profit in 2022 equals roughly $380 million

Pulse Analysis

The UK’s industrial strategy has placed the British Industrial Competitiveness Scheme at the centre of its effort to curb energy‑price volatility for heavy‑duty sectors. While the scheme offers relief to mortar suppliers, brick and tile producers—key inputs for any new build—have been left out. This omission is striking because brick kilns consume large amounts of gas and electricity, making them especially vulnerable to the post‑Ukraine energy shock that has driven costs sky‑high.

Brick manufacturers are now grappling with reduced output, staff cuts, and growing stockpiles of unsold bricks. The GMB union notes that the sector, which generated about £300 million (≈$380 million) in combined profits in 2022, now faces factory closures that threaten more than 10,000 jobs. With Labour’s ambition to deliver 300,000 homes annually, any disruption in brick supply could stall construction timelines, inflate costs, and erode confidence in the housing pipeline.

Policy makers must weigh the broader economic impact of excluding brickmakers from BICS relief. Extending targeted subsidies or low‑carbon energy credits could keep kilns operational, preserve skilled employment, and sustain the material flow essential for meeting housing targets. Such a move would align with the Industrial Strategy’s goal of fostering high‑growth, resilient manufacturing, while reinforcing Labour’s promise of delivering affordable homes across the country.