Cabinet Office Minister (): Every year, £400 billion of
public money is spent on government contracts. Spending that on
Britain businesses and supporting British workers should be a no
brainer.
The honest truth is that for too long, that's not how it's
worked. Doors have been effectively closed to many small
businesses, start-ups and charities. Too many workers and
communities have lost out. And too often, British businesses felt
that government didn't have their back.
Today, we are making changes to protect the industries that
matter most to our national security – steel, shipbuilding,
energy infrastructure, and AI. We will bring more delivery
in-house and cut red tape for small businesses trying to win
government contracts.
Backing Britain
This government believes it matters where things are made and who
makes them. So we will instruct departments to use powers
available in the Procurement Act to put Britain's national
interest first and back British industry.
Departments will have to confirm - for the first time - whether
prime contractors are using UK steel, or explain why not. We are
also developing a new shipbuilding framework that will keep
government contracts with British firms where necessary and where
our security interests demand it.
So whether you make steel in Port Talbot, build ships on the
Clyde, or run a tech start-up in Brighton - this government is on
your side.
Ending outsourcing by default
For decades, successive governments have been, at best,
ambivalent about whether public services are delivered in-house.
At worst, we've had outsourcing by default, with public services
hollowed out and sold off to the lowest bidder.
That era ends today. We're introducing a new Public Interest
Test, requiring all departments to assess whether a service can
be delivered more effectively in-house before any outsourcing
decision is made. This will apply to service contracts of £1
million and above, covering over 95% of central government spend.
All departments must also publish insourcing strategies to make
the biggest wave of insourcing in a generation a reality.
Making procurement fairer and simpler
If you're creating British jobs and supporting your local
community, that should matter too. So we're strengthening the
importance that positive community impact plays in procurement
decisions with a new definition of social value.
We know the importance of trade unions in creating good work, so
we're going to work closely with them and the business community
to get that definition right.
Small businesses and charities have told me time and time again
that the bureaucratic burden of bidding for contracts has all but
blocked them from even trying. So we've cut this process right
down to the basics, bringing in a “tell us once principle” so
they only have to submit their information once, rather than
starting from scratch each time. We'll also introduce AI tools to
save bidders hours of time and cut back unnecessary duplication.
With these changes, we've taken a big step forward towards a
procurement system that genuinely works in Britain's national
interest.
