ALFED has formally submitted its response to the Government’s consultation on the British Industrial Competitiveness Scheme (BICS), setting out a clear and evidence-led position on behalf of the UK aluminium industry.
The response recognises the importance of addressing the long-standing disparity in UK industrial electricity costs and welcomes the Government’s ambition to strengthen industrial competitiveness, supply chain resilience and domestic manufacturing capability.
However, ALFED’s submission also highlights several significant concerns raised directly by members, particularly around the proposed scope of eligibility and the risk of excluding strategically important parts of the aluminium value chain.
A central focus of the response is the exclusion of non-ferrous casting activities under SIC codes 2453 and 2454, despite equivalent ferrous activities being included within the proposed scheme framework. ALFED has made clear that this creates an imbalance between ferrous and non-ferrous manufacturing and risks placing UK aluminium casting operations at a competitive disadvantage.
The submission also directly challenges the electricity intensity assumptions underpinning the proposed eligibility framework. While the consultation states that foundational manufacturing industries with electricity intensity above 2.7% of GVA will qualify for support, evidence provided by members indicates that aluminium casting operations are significantly more electricity intensive than these thresholds and are highly responsive to industrial electricity price competitiveness.
ALFED has therefore raised concerns that the current SIC-level assessment may not fully reflect the realities of aluminium manufacturing and processing operations, particularly where businesses operate across highly integrated recycling, remelting, casting and downstream processing activities.
In addition, ALFED has emphasised the importance of ensuring that eligibility criteria properly reflect the practical realities of integrated aluminium processing and manufacturing operations, rather than relying solely on narrow SIC code categorisation.
The submission also raises member concerns around the recognition of downstream and finishing processes, including polishing and related surface treatment activities, which form an important part of UK aluminium manufacturing capability but may not currently be adequately reflected within the scheme scope.
More broadly, ALFED’s response reinforces several key industry positions:
- The need to support the full aluminium value chain, including recycling, remelting, casting, rolling, extrusion, processing and finishing
- Recognition of aluminium scrap as a strategic secondary raw material
- The importance of strengthening UK midstream processing capability
- The need for long-term industrial competitiveness and investment certainty
- Alignment between energy, trade and circular economy policy
The response makes clear that the UK aluminium sector does not lack capability, demand or willingness to invest. The challenge remains creating the competitive conditions that allow more aluminium value to be retained and processed domestically.
The response also highlights the importance of ensuring that industrial competitiveness policy supports wider decarbonisation objectives. Members noted that the substantial cost differential between gas and electricity already creates barriers to investment in electrified industrial processing technologies. ALFED’s submission argues that inclusion of aluminium casting and related non-ferrous processing activities within BICS would help improve the long-term commercial viability of industrial electrification investment across the sector.
ALFED would like to thank members who contributed insight, operational evidence and feedback throughout the consultation process. This input has been critical in ensuring the Federation continues to represent the realities and priorities of the UK aluminium industry with credibility and authority.
We will continue engaging with Government as the scheme develops and will keep members updated on further discussions and outcomes.
If you’re an ALFED member and would like to see ALFED’s full submission, this is available to view in the ALFED Members Area.
