IOM3 responds to Autumn Budget 2026
IOM3 responds to the Budget, examining the key announcements and how they measure up against the priorities we put to the Chancellor.
The Institute of Materials, Minerals & Mining (IOM3) has welcomed measures in the 2026 Autumn Budget to support industrial competitiveness, defence and investment, but says a stronger focus is needed on materials security, resource resilience and the specialist skills underpinning the UK’s industrial ambitions.
Dr Colin Church CEnv FIMMM, CEO of IOM3, said:
“The Budget contains welcome measures to support industrial competitiveness, including investment in defence, housing and clean energy, and action on electricity costs for energy-intensive manufacturers. But investment alone is not enough.
“You cannot build industrial resilience without materials resilience. The UK needs secure material supplies, strong domestic capability and the specialist skills to turn investment into lasting industrial strength.
“That is why, before the Budget, IOM3 called on the UK Government to prioritise a UK Materials Strategy, faster progress towards a circular economy and sustained investment in specialist skills.
“The Budget makes progress, but more is needed in each of these areas. IOM3 will continue to press for progress through the forthcoming 10-year Plan for Britain, the long-overdue Circular Economy Growth Plan and wider Government policy, ensuring materials, minerals and mining are at the heart of the UK’s industrial future.”
Key announcements relevant to IOM3 members
Industrial energy: The British Industrial Competitiveness Scheme will give 10,000 energy-intensive manufacturing firms a 20–25% electricity discount from April 2027, including a back payment for 2026–27.
Defence and sovereign capability: The Budget fully funds the Defence Investment Plan and targets defence spending of 3% of GDP by 2030. The National Wealth Fund and British Business Bank will deploy up to £5bn over four years into defence, dual-use technologies and other sectors supporting national security and sovereign capability.
Industrial investment and innovation: The Budget provides significant additional funding for the National Wealth Fund and British Business Bank to support investment in UK businesses and strategic sectors. This includes £2bn for a new Energy Wealth Fund to invest in renewable and low-carbon energy infrastructure.
Skills and industrial capability: The Budget confirms £100m for local apprenticeship services alongside targeted investment in engineering capability. A new 10-year, £2.5bn government and Rolls-Royce programme for next-generation gas turbine technologies is expected to support 3,300 jobs by the end of 2029 and strengthen engineering, development and testing capability in the UK.
Mining community: The Budget includes changes to the Mineworkers’ Pension Scheme and British Coal Staff Superannuation Scheme, allowing members to receive 100% of future surpluses generated by scheme performance. The Government will also work with trustees towards transferring the remaining Guarantor’s Fund.
How does the Budget measure up against IOM3’s priorities?
IOM3 has assessed the Budget against the three priorities it put to the Chancellor in September: securing materials, building resilience and developing skills.
Secure materials
IOM3 called for: A funded UK Materials Strategy linking materials security, innovation and industrial capability.
IOM3 assessment: MORE PROGRESS NEEDED
The Budget provides welcome investment in industry and innovation, but lacks a joined-up approach to materials security. More needs to be done to address critical materials, supply-chain risks and the UK’s domestic capability.
Build resilience
IOM3 called for: Faster progress towards a circular economy, including publication and implementation of the Circular Economy Growth Plan.
IOM3 assessment: MORE PROGRESS NEEDED
The Budget does not give enough impetus to reuse, recovery and recycling and the Government has still not published its Circular Economy Growth Plan, which is already a year late. More action is needed to keep valuable materials in productive use and reduce reliance on vulnerable supply chains.
Develop skills
IOM3 called for: Strategic workforce planning and investment in materials, minerals and mining education, training and professional development.
IOM3 assessment: MORE PROGRESS NEEDED
The Budget itself acknowledges “weaknesses in technical and vocational skills, which can leave businesses without the capabilities they need.” Targeted investment in apprenticeships and engineering capability is welcome, but more is needed to develop the specialist technical and professional skills required by the UK’s industrial ambitions.
The Autumn Budget 2026 is available >
Read our Open Letter to the Chancellor >
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