22 May 2026: The British Confederation of Paper Industries (CPI) has called on the UK government to extend newly announced support measures for the chemicals and ceramics sectors to include papermaking, arguing that the paper and board industry faces similar pressures from high energy costs and international competition.
The appeal follows the UK government’s announcement of new support packages worth a combined £470m for the chemicals and ceramics industries. The measures include a £350m “Critical Chemicals Resilience Fund” and a £120m package aimed at supporting energy efficiency and decarbonisation investments in the ceramics sector.
In a statement released on 21 May, CPI welcomed the government’s acknowledgement of the “energy cost crisis affecting British manufacturing” but criticised the exclusion of papermaking from the schemes.
“However, limiting this support to two sectors is a missed opportunity and we strongly urge that the eligibility rules are widened to include papermaking,” the association stated.
CPI also used the announcement to renew broader calls for a more comprehensive UK industrial policy. According to the association, support measures should not only be introduced when industries are already facing plant closures or severe crises.
CPI chief executive Alex Veitch warned that the UK paper industry is already experiencing growing pressure on investment and site viability. While describing the sector as an important contributor to manufacturing employment and the circular economy, he stressed that papermakers are operating in an increasingly challenging global environment.
“The UK has a successful paper industry, providing high quality manufacturing jobs and enabling a sustainable, circular economy. Yet even in our sector we are also seeing several closures and pressure on sites to secure the investment required for long-term viability,” Mr Veitch said.
“In a highly competitive, global marketplace it is vital the Government widens eligibility rules to help secure UK paper production,” he added.
The intervention comes at a time when energy costs remain one of the central concerns for the UK paper and board industry. Market participants have repeatedly highlighted that British manufacturers face structurally higher electricity and gas costs than many European competitors.
The CPI represents UK paper and board manufacturers, corrugated packaging producers, tissue manufacturers and recovered paper collectors. According to CPI, the sector generates an aggregate annual turnover of around £15bn and supports approximately 56,000 direct jobs as well as a further 59,000 indirect jobs.
Frauke Schmidt www.euwid-paper.com/news