A government initiative to 'buy British' is facing challenges due to a lack of interest from British companies in bidding for public contracts. Joe Hill, policy director at the Re:State think tank, states that in about 20% of tenders, only one supplier submits a bid.
The public sector's procurement rules are identified as a significant barrier, making it difficult for new companies, particularly startups with innovative products or services, to secure contracts. The rules often require products to have gone through a lengthy tender process against highly detailed specifications.
Furthermore, businesses face high costs when working with the government. Beyond price and quality, bids are assessed on commitments to 'social value' measures, which can include decarbonisation, office relocation, and creating new apprenticeships.