The UK Government's £400 billion procurement overhaul has sparked hope for a boost to domestic industry, with Cabinet Office Minister Chris Ward championing the transformation of public spending into an engine for economic growth. As part of this ambitious programme, the Minister has outlined three key policy objectives: safeguarding national security and core industries, promoting 'insourcing' in public services, and levelling the playing field for smaller businesses and charities to secure government contracts.
Mr Ward highlighted examples where British companies had lost out on sensitive defence and AI contracts due to complexities in the bidding process. He recalled a personal experience from his constituency work, where a domestic violence charity spent £30,000 and months bidding for a government contract – funds that could have been better spent on frontline services.
The overhaul is built around three core principles: backing British businesses, building a fairer economy, and simplifying the procurement process. To this end, new guidance has been issued to all government departments, empowering them to use national security powers under the 2023 Procurement Act to directly award contracts to British companies in critical sectors such as steel, shipbuilding, energy, and artificial intelligence.
A new Policy Notice published today takes this commitment a step further, mandating that all future government contracts involving steel confirm whether British steel is being used or provide an explanation for not doing so. These measures collectively signal the Government's resolve to increase the number of contracts awarded to British businesses in core industries, bolstering national security and driving domestic economic growth.