UK cement production has plunged to its lowest level since the 1950s, with just 7.3 million tonnes produced in 2024—roughly half of its 1990 output—driven by soaring industrial energy prices, tough carbon taxes, and high labour and regulatory costs. These cost pressures are unmatched by importers, who avoid similar carbon levies, tipping the scale in favour of imported cement, now accounting for 32% of UK demand—a near threefold increase since 2008

Core Economic Pressures

• Sky-high energy costs: Industrial electricity prices in the UK are significantly higher—around 50% more than in France and Germany, and even double US rates—driven by dependence on gas and the UK’s pricing model
• Heavy carbon and regulatory burden: UK cement producers face steep carbon levies and less generous exemptions from green levies compared to European peers
• Unfair competition from imports: Imported cement—often high-carbon and cheaper—is outcompeting domestic producers. Without a functioning UK Carbon Border Adjustment Mechanism (CBAM), these imports aren’t penalised for their emissions
• The government plans to roll out a UK CBAM by 2027, but the delay compared to the EU's 2026 implementation gives imports an ongoing advantage