ALFED lobbying delivers expansion of British Industrial Competitiveness Scheme for aluminium sector

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The Aluminium Federation (ALFED) has welcomed the UK Government's decision to expand eligibility under the British Industrial Competitiveness Scheme (BICS), following sustained engagement with Government on behalf of the aluminium sector.

The government has confirmed that just four additional Standard Industrial Classification (SIC) codes will be added following its latest consultation. Significantly, two of these directly support the UK cast metals sector, while the remaining additions recognise manufacturing activities undertaken by businesses across the wider aluminium supply chain.

The newly eligible activities are:

• 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

The announcement follows months of engagement between ALFED, its members, the Cast Metals Federation (CMF) and Government, ensuring that the British Industrial Competitiveness Scheme better reflects the realities of energy-intensive manufacturing.

As part of this work, ALFED and CMF jointly briefed Ministers and MPs following discussions at the All-Party Parliamentary Manufacturing Group (APMG), highlighting the impact that industrial electricity costs are having on investment, production, employment and long-term manufacturing competitiveness.

CEO Statement

Nadine Bloxsome, Chief Executive Officer of ALFED, said, "This is an extremely positive outcome for the aluminium sector and demonstrates that constructive engagement between industry and Government can deliver meaningful results.

The inclusion of these additional SIC codes reflects the compelling evidence provided by ALFED, our members and the Cast Metals Federation throughout the consultation process. The fact that half of all newly added codes directly support our industries is particularly encouraging and recognises the strategic importance of aluminium and cast metals to UK manufacturing.

Whilst BICS is a welcome step forward, it should be viewed as one part of a much broader industrial competitiveness strategy. Long-term investment requires internationally competitive industrial electricity prices, stable policy frameworks and continued collaboration between Government and industry. We look forward to continuing those conversations as the Scheme is implemented."

The British Industrial Competitiveness Scheme is intended to reduce industrial electricity costs by exempting eligible manufacturers from the indirect costs of the Renewables Obligation, Feed-in Tariffs and the Capacity Market, helping improve the competitiveness of UK industry. The Government has also confirmed the implementation timetable and updated eligibility criteria following the latest consultation.

ALFED believes this announcement demonstrates the importance of evidence-led industry engagement and thanks its members for contributing the information and practical insight that helped shape the Federation's response.

The Federation will continue working with Government to ensure BICS is implemented effectively while pressing for longer-term reforms that deliver internationally competitive industrial energy prices and support investment across the entire aluminium value chain.

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Note: This article has been shared by ALFED and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.