Government confirms additional aluminium manufacturing activities will now qualify for industrial electricity cost support following sustained industry engagement.
The Aluminium Federation (ALFED) is delighted to announce that the UK Government has expanded eligibility under the British Industrial Competitiveness Scheme (BICS) to include several manufacturing activities that represent a significant proportion of the UK aluminium sector.
Following extensive engagement with Government by ALFED and the Cast Metals Federation (CMF), four additional SIC codes have now been added to the Scheme.
Importantly, two of the four new codes directly support the UK cast metals sector, demonstrating the impact that coordinated industry engagement can have when backed by robust evidence.
Newly Eligible Activities
The newly included SIC Codes are:
| SIC Code | Activity |
| 2453 | Casting of light metals |
| 2454 | Casting of other non-ferrous metals |
| 2550 | Forging, pressing, stamping and roll-forming of metal; powder metallurgy |
| 2561 | Treatment and coating of metals |
For ALFED members, the inclusion of Treatment and Coating of Metals (2561) and Forging, Pressing, Stamping and Roll-Forming (2550) represents an important recognition of businesses operating across the wider aluminium value chain. Likewise, the addition of Casting of Light Metals (2453) and Casting of Other Non-Ferrous Metals (2454) is a significant achievement for the UK’s foundry sector.
A Positive Outcome for the Aluminium Industry
Over recent months, ALFED has worked closely with members, Government officials and the Cast Metals Federation to ensure that the realities of the aluminium supply chain were fully understood during the development of BICS.
Alongside formal consultation responses, ALFED and CMF jointly briefed Ministers and MPs following the recent All-Party Parliamentary Manufacturing Group (APMG) discussions on industrial energy competitiveness, highlighting the importance of internationally competitive electricity prices for investment, jobs and manufacturing growth.
The Government has now confirmed that only four additional SIC codes will be added following the consultation. With half of those directly benefiting aluminium and cast metals manufacturing, this represents a significant success for the sector.
CEO Statement
Nadine Bloxsome, Chief Executive Officer of ALFED, said:
“This is a very positive outcome for the aluminium sector and demonstrates the value of constructive, evidence-based engagement with Government. The inclusion of these additional SIC codes reflects the strength of the case presented by ALFED, our members and the Cast Metals Federation on behalf of the wider industry.
Whilst we recognise there is still much more to do to improve the international competitiveness of UK manufacturing, this announcement is an important step forward. It ensures more businesses across the aluminium value chain can benefit from support through BICS and shows that Government is listening to the challenges facing energy-intensive industries.
We would like to thank all of our members who contributed evidence throughout the consultation process. Your engagement has helped shape this outcome, and ALFED will continue working closely with Government to ensure the Scheme delivers meaningful benefits for our industry.”
Looking Ahead
Whilst ALFED warmly welcomes this announcement, we continue to believe that BICS should form part of a wider long-term industrial competitiveness strategy.
The Federation will continue to work with Government on:
- internationally competitive industrial electricity prices;
- effective implementation of BICS;
- ensuring the aluminium supply chain is fully represented in future policy development;
- supporting investment, innovation and employment across UK aluminium manufacturing.
Further implementation guidance, including application arrangements, will be published by Government in the coming months. ALFED will keep members updated and provide further guidance as information becomes available.
Further Information
The Government’s response to the BICS consultation and the updated list of eligible SIC codes can be accessed here: https://www.gov.uk/government/consultations/british-industrial-competitiveness-scheme-consultation-on-scheme-eligibility-and-approach
