The government has announced £120 million of support for the ceramics industry – to help 're-industrialise' places like Stoke-on-Trent.

Business Secretary Peter Kyle said the 'bold' support package for a sector hit by surging energy costs and cheap foreign imports would allow manufacturers to modernise and thrive into the future.

The package, announced by Chancellor Rachel Reeves in the House of Commons today, includes £60 million of capital investment for energy efficiency and decarbonisation projects, alongside £60 million in revenue support to help successful applicants manage higher electricity costs.

Mr Kyle said the support would go 'way beyond' the extension of the government's supercharger scheme for energy-intensive industries, which the industry and Stoke-on-Trent MPs have been calling for.

The announcement comes less than two months after Derbyshire-based Denby Pottery became the latest big name in the industry to collapse into administration – no job losses are expected at Denby-owned Burgess and Leigh, based in Middleport.

Stoke-on-Trent Central MP Gareth Snell warned last month that the government would be overseeing the end of UK ceramics if it did not intervene urgently.

Mr Kyle believes the package announced by the government will mean 'not just maintaining business but growing business'.

He said: "This scheme will be the boldest intervention into ceramics and the largest opportunity that government has presented to ceramics for well over a generation.

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"This means that there is now an opportunity for businesses, large and small, to think securely and boldly about the future in a way that they hadn't for a long time.

"This isn't about offering a lifeline to ceramics. This is about offering a partnership to the ceramics sector that will help it face the future with confidence,

"In many of the conversations that I've had, survival has been paramount in the conversation, and the idea of transforming and thriving into the future has felt like a pipe dream.

"Now, I want to help businesses in their moment of need in ceramics, particularly there in Stoke where I know 3,000 people are employed and depend on the ceramics sector.

"It is important to the cultural heritage of the town. I realise it's more than just a job. It is also an identity.

"This is a government that is a participant in industry and community life up and down the country and stands firm in re-industrialising, not just halting the de-industrialisation programme that we inherited."

UK manufacturers across the industry will be able to apply for the support, including those in refractory products, clay building materials, household ceramics and technical ceramics.

The government said it would work with the industry to finalise how the package will be delivered, with applications expected to open in the summer.

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Ceramics industry leaders and local MPs have long been calling for tailored support for the sector, which has missed out on previous government schemes due to its heavy reliance on gas. They pointed to the importance of ceramics to other key industries, from housebuilding to defence to medicine.

Stoke-on-Trent City Council recently commissioned a report that found that firms in the Potteries could have a bright future if helped to weather the current economic storms, worsened by the wars in Ukraine and Iran.

Rob Flello, chief executive of industry body Ceramics UK, welcomed the announcement of the support package.

He said: "Ceramics UK is delighted by this landmark decision by the government which recognises the fundamental role of our sector in the UK economy.

"Ceramics are critical to the UK economy in the manufacture of vital products such as steel, glass and other high temperature products, as well as items that are used daily in homes and businesses across the UK.

"Our priority is to ensure that the scheme works for all members of Ceramics UK, from the smallest ceramics companies through to the largest organisations, creating a sustainable future for our industry."

The support package was also praised by North Staffordshire's MPs.

Mr Snell said: "The ceramics industry plays a vital role in our local economy, providing skilled jobs and supporting a wide range of industries. From the tableware in our homes to lifesaving medical equipment and components used in jet engines, ceramics underpin so much of modern life.

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"Recent pressures have put that at risk, making government action essential to stabilise the sector and give businesses the confidence to continue to invest and plan for the future.

"Working closely with Ceramics UK, we have repeatedly taken the case directly to government, and I am delighted that those calls for support have now been answered with this package of measures."

City council leader Jane Ashworth added: "Today's announcement is a real boost for our city. This investment is a vote of confidence in our ceramics sector.

"At a time when manufacturers have faced huge pressures, it shows that Stoke-on-Trent still matters and that our ceramics industry has a big role to play in Britain's future."