- Government to prioritise money to boost UK home
capacity, with recent events highlighting the fragility of global
supply chains.
- Value for money delivered as departments will
consider whether contracts over £1 million could be done better
in-house.
- Companies encouraged to deliver local jobs, skills
and apprenticeships to strengthen bids for public sector
contracts.
Shipbuilding, steel, AI and energy infrastructure will be
recognised as critical for national security, with new guidance
prioritising contracts for British business where necessary to
protect our national security.
Recent events have shown the fragility of global supply chains,
and the importance of ensuring domestic capacity in key sectors
which are vital for national security.
For the first time, the government is introducing clear guidance
on how departments can protect the UK's economic security and
build resilience in four critical sectors: steel, shipbuilding,
AI and energy infrastructure. This guidance will ensure the
government does everything in its power to facilitate strong and
sustainable industry in the UK.
With further requirements set for steel, departments will either
use British steel or be required to provide a justification if
the steel is to be sourced from overseas, in a further boost to
the UK Steel Strategy launched last week.
The changes come as part of a major package of reforms that will
back British business, workers and communities; protecting
national security, cutting waste and giving more public money to
British companies.
This will support our Modern Industrial Strategy to provide the
certainty needed to drive long-term investment across the country
and ensure our domestic supply chains are more resilient.
And it follows the government publishing its National Security
Strategy, which aligns our national security objectives and plans
for economic growth in a way not seen since 1945.
Cabinet Office Minister, said:
“This Government is backing British businesses and the working
people who power them. These reforms are about using the full
weight of Government spending to support British jobs, protect
our national security and grow our economy.
“Whether you make steel in Scunthorpe, build ships on the Clyde
or run a small tech firm in the Midlands, this Government is on
your side.”
For decades, previous governments have defaulted to outsourcing
public services without properly asking whether they could be
done better and more cost-effectively by public sector
workers.
This will change with a new Public Interest Test, with
departments now being asked to assess whether outsourced service
contracts over £1 million could be delivered more effectively
in-house. This test will cover over 95% of central government
contracts by value. This will deliver taxpayers a fairer deal and
end outsourcing by default.
This government believes its spending should do more than buy a
product or service. It should create jobs, build skills and
strengthen communities.
This is why community impact will now be placed at the heart of
buying decisions, with companies encouraged to integrate national
and regional schemes into their bids, creating local jobs and
apprenticeships.
To ensure accountability, departments will publish and annually
report on a specific social value goal for all contracts valued
over £5 million. This will cover over 90% of central government
contracts by value.
A new suite of AI tools to streamline the commercial process have
also been developed. Contract terms will be simplified and
additional business information will be integrated into a central
platform, so that small businesses do not have to submit the same
information twice when bidding for different contracts.
END
Notes to editors:
-
A national economic security shipbuilding framework is
currently under development. Further details will be
published in due course.
-
Larger departments spending more than £100m a year on
contracts will also be expected to publish an insourcing
strategy, setting out how they plan to bring services back
in-house, where it represents better value.
