The government is sharpening the way it uses its vast procurement budget, with ministers saying public spending must do more to protect national security, strengthen supply chains and support home-grown industry.
Rachel Reeves, the Chancellor, and Darren Jones, the Chief Secretary to the Prime Minister, have set out new guidance designed to help departments use procurement rules to back strategic sectors where security and resilience are judged to matter most. The move comes as...
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ministers argue that recent global disruptions have exposed the risks of relying too heavily on short-term buying decisions and fragile international supply chains.
Officials say the state spends about £400 billion a year on procurement, giving Whitehall significant leverage over how critical goods and services are sourced. Under the new approach, departments will be encouraged to use the national security exemption in the Procurement Act 2023 where appropriate, while dedicated sector leads across government will oversee major contracts and advise ministers on their application.
The Treasury will also write to accounting officers to underline the need to factor national security into future spending decisions, while still demonstrating value for money. Ministers say the guidance remains consistent with international trade agreements and is intended to complement work with allies and trading partners on supply chain resilience.
The government also said British-founded companies have won £5 billion in new contracts since March, with awards spanning areas such as a digital platform for RAF pilots, AI fraud detection tools for HMRC and road recovery services on the strategic road network.
Another strand of the policy is aimed at education technology. Liz Kendall, the Technology Secretary, said six British organisations had been selected to develop AI tutoring tools, backed by £1.8 million, with the aim of helping up to 450,000 disadvantaged pupils from 2027.
The broader push is part of the government’s industrial strategy, with ministers pointing to contract gains for firms in places including Farnborough, Huddersfield, Edinburgh and Solihull. Mayoral strategic authorities are also being drawn into the effort, including projects to procure electric buses and steel from UK suppliers in West Yorkshire and Greater Manchester.
Separate guidance published under the Procurement Act 2023 sets out technical details for procurement teams, including rules on exclusions, debarment and defence and security contracts. The Cabinet Office says the aim is to give contracting authorities clearer tools to assess supplier risk, including national security threats, while keeping the system open to trusted international partners.
Source: Noah Wire Services
