More potteries will go under if Andy Burnham reneges on promised £120m support, Portmeirion boss warns

The boss of pottery giant Portmeirion has told Andy Burnham to 'put your money where your mouth is' and provide financial support for the ceramics sector.

Chief executive Michael Scheepers, who runs the Stoke-on-Trent-based business behind beloved brands Spode, Portmeirion and Royal Worcester called for help to keep the British manufacturing sector afloat.

It comes after high-profile collapses in the sector. The 217-year-old firm Denby fell into administration in March with the loss of 600 jobs, while pottery maker Burleigh was rescued by a former Burberry boss in June.

The sector's troubles have been blamed on spiralling UK energy prices – one of the highest in Europe even before the Iran war – plus tax hikes and increases to the minimum wage.

Scheepers is among those calling for more ceramic companies to be included in the British Industrial Supercharger scheme, which provides relief on electricity bills and green levies. 

Only 10 per cent of Britain's 100 potteries qualify for a refund currently.

He has warned more firms could go to the wall if the Government does not confirm details of a £120million support package that was announced by the previous administration in May.

Portmeirion boss: Michael Scheepers has told the Prime Minister to deliver on his promises to help Britain's ceramic makers

In September, Burnham said he would be a 'staunch defender of the Potteries' and recognised the 'crucial importance of the ceramics industry'.

But Scheepers said this was a 'galling statement'. He told This is Money: 'We've had lots of talk about reindustrialisation, and nothing happened. He needs to start putting his money where his mouth is and really start delivering for the sector.'

He added: 'Good intentions don't pay the mortgages of our employees. Good intentions don't allow children to go to university. Good intentions don't keep businesses running. Good intentions don't pay the energy bills.'

Businesses like his are well placed to help ameliorate the worrying numbers of unemployed young people as his products require craft by hand. 'No Artificial Intelligence is coming to make mugs and plates,' he said.

But ceramics firms like his are struggling with the high costs and red tape around hiring young people, he said. 

Last year the company did not run its apprenticeship academy, which would usually hire around ten people a year.

Scheepers said: 'We would love to involve more apprentices in our business, but it has become prohibitively expensive for ourselves, but also for lots of other companies in the sector to employ apprenticeships because the scheme itself has become so complex.'

He has also sent a letter to the Prime Minister to invite him to tour his factory and 'to see first-hand the fantastic craftsmanship our industry inspires.'

'Without urgent action, Britain risks losing more heritage brands from this key manufacturing sector, generations of specialist skills, and the industrial jobs that sustain communities such as Stoke-on-Trent,' the letter says.

There were 200 factories in Stoke-on-Trent in the 1970s while now there are around 30, according to Historic England.

Scheepers added that energy costs put British businesses 'at a significant disadvantage' as ceramics makers try to 'embrace cleaner technology'.

He added: 'There is not an unwillingness to embrace new technology, and this is definitely not just us holding our hand up and hoping for a government handout. That's not what this is about.'

A Government spokesman said: 'The ceramics industry is an important part of the UK’s industrial story. Our £120 million fund is a crucial part of our plan to reindustrialise the UK, helping ceramics manufacturers to modernise, grow and stay competitive.

'We will release more information about which companies are eligible and how they can apply before the end of the year.'

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