Breedon Demands Government Reforms as UK Cement Output Drops, London 2026

Key Points:

• Campaign Renewal: Breedon Group has intensified its political pressure on the UK government through the “Back British Cement” initiative.
• Competitive Disadvantage: UK cement manufacturers face structurally higher electricity tariffs and stricter carbon regulations compared to foreign competitors.
• Historic Lows: UK cement production has plunged to its lowest level since 1950 due to cumulative market and regulatory pressures.
• Economic Footprint: Breedon supplies approximately two million tonnes of cement annually and supports over 4,000 jobs across Britain and Ireland.
• Core Policy Requests: The company demands robust UK Carbon Border Adjustment Mechanisms (CBAM), alignment with EU carbon pricing, and inclusion in industrial electricity cost compensation schemes.
• Strategic Material Status: Breedon advocates for cement and concrete to be formally designated as strategic materials within public procurement frameworks.
• Supply Chain Warning: Failure to act risks increasing UK dependence on high-carbon imported cement, putting jobs, investment, and national infrastructure resilience at risk.

London (West London News) August 11, 2026 –Breedon Group has escalated its engagement with UK government departments through its “Back British Cement” campaign, calling for immediate structural reforms to level the playing field for domestic cement producers. The building materials supplier has warned ministers that British cement manufacturers operate under significant regulatory and financial handicaps compared to international exporters. Specifically, domestic manufacturers face structurally higher industrial electricity tariffs alongside significantly tougher carbon emissions rules.

According to figures highlighted by Breedon Group, these operational disparities have contributed directly to domestic cement output falling to its lowest point since 1950.

As a major supplier providing approximately two million tonnes of cement annually and sustaining more than 4,000 jobs across Britain and Ireland, Breedon Group argues that without prompt legislative intervention, the UK construction supply chain will suffer long-term structural damage.

What Key Policy Measures are Required to Protect Domestic Cement Production?

Following an initial round of cross-departmental dialogue with government officials, Breedon Group has outlined a clear set of legislative and policy demands designed to restore competitiveness to the UK cement sector.

Breedon Group is advocating for the implementation of stronger and clearer UK carbon border adjustment measures. Without effective carbon border mechanisms, domestic plants paying high carbon levies remain vulnerable to cheap, high-carbon imports from regions with lax environmental standards.

Furthermore, the campaign demands closer alignment between UK carbon pricing mechanisms and the European Union Carbon Emissions Trading System (EU ETS) to prevent cross-border market distortions.

Why Must Cement Producers Receive Industrial Power Compensation?

In addition to carbon pricing reforms, Breedon Group is calling for the formal inclusion of cement manufacturing within government industrial power compensation schemes.

Because cement production is inherently energy-intensive, UK producers pay substantially more per megawatt-hour than many European and international counterparts. Inclusion in state support schemes for heavy industry is seen as vital to ensuring domestic operations remain financially viable while transitioning toward net-zero goals.

How Will Strategic Recognition and Decarbonisation Acceleration Impact the Sector?

Breedon Group is pushing for cement and concrete to be formally recognised as strategic materials within UK public procurement policies.

By prioritizing domestically produced materials in major national infrastructure projects and public works, the government can secure supply chain sovereignty while guaranteeing demand for low-carbon British production.

The “Back British Cement” campaign stresses the urgency of accelerating government support for industrial decarbonisation technologies, including carbon capture, utilisation, and storage (CCUS) and alternative fuels.

Breedon Group warns that without accelerated regulatory approvals and capital co-investment for green technologies, the UK risks falling behind global competitors.

The company cautions that inaction will leave Britain increasingly reliant on imported cement with higher embodied carbon footprints, compromising national climate targets, eroding domestic manufacturing jobs, and weakening broader economic resilience.

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Background of the Development

The UK cement manufacturing sector has faced worsening economic headwinds over recent years, driven by escalating energy costs following global supply shocks and increasingly stringent domestic environmental compliance standards.

While the UK government set ambitious net-zero targets for heavy industry, domestic manufacturers have consistently pointed out an unlevel playing field: overseas producers exporting into the UK market are frequently exempt from equivalent carbon pricing or elevated energy taxes.

This regulatory asymmetry has caused UK cement production volumes to drop continuously, reaching levels not seen in over seven decades.

The “Back British Cement” campaign was initially launched by Breedon Group to highlight this structural threat, warning that allowing domestic heavy industry to erode leads to “carbon leakage”—where emissions and manufacturing jobs are simply exported overseas rather than eliminated.

Prediction for the UK Construction Sector and Domestic Producers

If the UK government responds positively to Breedon Group’s proposals, domestic cement producers could gain crucial financial relief through energy cost compensations and protected market share under strategic public procurement rules.

A well-enforced Carbon Border Adjustment Mechanism would prevent foreign competitors from undercutting UK manufacturers on price by bypassing carbon costs, thereby encouraging long-term capital investment in green UK manufacturing technologies.

Conversely, if government policy remains unchanged, domestic output is predicted to contract further. Construction firms throughout the UK would become heavily reliant on imported cement, exposing major housing and infrastructure projects to international supply chain disruptions, fluctuating shipping costs, and geopolitical shocks.