IChemE welcomes support for industrial competitiveness but seeks clarity on decarbonisation funding

IChemE has welcomed key measures announced in the UK Government's 2026 Budget to support strategically important industries, while expressing concern over reductions in funding for industrial decarbonisation technologies. 

Responding to the Budget, IChemE Chief Executive Officer Yvonne Baker said: "We welcome the government's commitment to the £350 million Critical Chemicals Resilience Fund and its planned launch before the end of the year. Supporting strategically important chemical producers, which underpin sectors ranging from food and pharmaceuticals to energy and defence, is vital for maintaining resilient supply chains, safeguarding skilled jobs and strengthening the wider economy. Chemical engineers play a critical role in ensuring these industries remain competitive, resilient and able to invest for the future. 

"The British Industrial Competitiveness Scheme, which will reduce electricity costs for eligible manufacturers from April 2027, is a positive step towards improving the competitiveness of UK industry. However, affordable energy remains a significant challenge. Competitive electricity prices are essential not only for existing manufacturing operations but also for the transition to lower-carbon industrial processes. Effective delivery of the scheme will be key to providing businesses with the confidence to invest. 

"We are concerned, however, by the reduction in capital grant funding for carbon capture, utilisation and storage (CCUS) and hydrogen projects. While the government has indicated it will prioritise mature projects and explore alternative investment models, industry needs greater clarity on how emerging technologies will be be supported through to commercial deployment. We urge the government to work closely with industry and the engineering profession to ensure these changes do not delay viable decarbonisation projects or undermine critical skills and expertise." 

What is chemical engineering?

Chemical, biochemical and process engineering is the application of science, mathematics and economics in the process of turning raw materials into everyday, and more specialist, products. Professional chemical engineers design, construct and manage process operations all over the world. Energy, pharmaceuticals, food and drink, synthetic fibres and clean drinking water are just some of the industry sectors and products where chemical engineering plays a central role.

IChemE

The Institution of Chemical Engineers (IChemE) advances chemical engineering's contribution for the benefit of society. We facilitate the development of chemical engineering professionals and provide connections to a powerful network of around 32,000 members in more than 100 countries. 

We support our members in applying their expertise and experience to make an influential contribution to solving major global challenges, and are the only organisation permitted to award Chartered Chemical Engineer status and Professional Process Safety Engineer registration.