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Government Procurement Strategy
22 April 2026
Lead MP
Chris Ward
Debate Type
Ministerial Statement
Tags
EconomyEmploymentEnergyBusiness & Trade
Other Contributors: 26
At a Glance
Chris Ward raised concerns about government procurement strategy in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The UK government currently spends around £400 billion annually on procurement, which often does not yield optimal results due to the complexity of the system. The Minister announced major reforms aimed at protecting national security, supporting British businesses, delivering a fairer economy, and simplifying procurement processes. These reforms include new guidance for departments to direct procurement towards sectors vital for national security like steel, shipbuilding, energy independence, and AI. Departments will be required to confirm if prime contractors use UK steel or provide reasons why not. A new shipbuilding framework will restrict contracts to British firms where it supports national security interests. The government will also introduce a public interest test to end the age of outsourcing by default, requiring departments to assess whether services can be delivered more effectively in-house and publish robust insourcing strategies. Social value will be strengthened through a redefined definition that will underpin all Government procurement. The Minister also announced a rapid review of existing requirements to reduce burdens on small businesses and charities.
Leigh Ingham
Con
Stafford
Question
Through a change in procurement policy that is more focused on backing British businesses, investing in Britain to help secure thousands of good, unionised jobs, and remaining community-focused, the Government will make sure that local people are reaping the full rewards from this move. I welcome it, and I welcome the Minister’s response to my urgent question. Could he please outline the first steps to deliver this procurement reform, and what it will mean for manufacturers in my constituency and in constituencies around the UK?
Minister reply
The Cabinet Office is working on new guidance that will be put before the House very shortly—I hope before the summer recess—which will make flesh the commitments I have made today. The guidance has three big principles: backing British businesses, creating a fairer economy and making the system simpler and fairer for all.
Mike Wood
Con
Dudley South
Question
I congratulate the hon. Member for Stafford (Leigh Ingham) on securing this urgent question—I know how rare it is for a Government Parliamentary Private Secretary. [Interruption.] She is not any more—I apologise. I welcome the Government’s ambition to modernise public procurement, but ambition, as ever, must be matched by delivery. There are a number of questions that the Minister must answer today.
Minister reply
I thank the hon. Member for those questions—let me try to answer a few of them. First, on SMEs and Department spend, around £7 billion of Government contracts will go to SMEs as a result of those changes. We did publish the departmental spends the day before recess; they show an ambitious step forward. The EU’s “Buy European” policies are not in conflict with any of our international agreements or negotiations with the EU. At the heart of this package is a recognition that we need to use our procurement budget within international law and regulations to support our industries. Social value is already mandatory at 10% within the contracting system, but I am changing the definition so that it does more to support communities.
Chi Onwurah
Lab
Newcastle upon Tyne Central
Question
I applaud the Government’s move to use the £400 billion of public procurement—almost one eighth of British GDP—in the interests of the British people and the British economy. The Science, Innovation and Technology Committee has often heard that a Government contract is worth more than a Government grant to the start-ups and spin-outs that are so important to our economy. Will the Minister confirm that this approach will be joined up with our strategy for sovereign capability, so that we do not find ourselves once again in the position where the Ministry of Defence awards a contract without competition to a large US artificial intelligence company?
Minister reply
The package includes helping our sovereign AI industry and science and technology industries. The new approach is aimed at boosting start-ups and ensuring that procurement rules help companies with smaller procurement departments win contracts, rather than only benefiting those with large procurement departments.
Question
The hon. Member questioned the effectiveness of current procurement rules for British small businesses and highlighted issues such as non-payment, threats to suppliers, and security risks associated with foreign procurement. She asked whether the Government should set a higher target for government spending with SMEs.
Minister reply
The Minister agreed that current procurement practices are inadequate and promised to take steps towards changing them. He emphasised the need to support British industry and jobs by improving fairness in procurement processes.
Gareth Snell
Lab
Stoke-on-Trent Central
Question
The hon. Member advocated for 'buy British' initiatives, pointing out that one-third of Government Car Service uses foreign cars despite taxpayer-funded housing projects importing bricks from abroad.
Minister reply
The Minister acknowledged the need to support British industry more comprehensively but noted his current focus on using existing procurement exemptions and guidance to achieve near-term improvements.
Julian Lewis
Con
New Forest East
Question
The right hon. Member inquired about safeguards against foreign supply chains and questioned the necessity of demonstrating trade union recognition for companies bidding on government contracts.
Minister reply
The Minister assured that robust processes are already in place regarding supply chains, and clarified that union recognition requirements can be weighted within social value but do not change under the new strategy.
Question
My hon. Friend welcomed the procurement changes and urged for inclusive personal protective equipment as a specification in public sector contracts.
Minister reply
The Minister acknowledged the importance of this issue and committed to continuing work with industry stakeholders to improve workplace safety.
Question
The hon. Member asked for a precise savings target from the £400 billion procurement budget.
Minister reply
The Minister stated that existing measures do not require additional Treasury funding and agreed to review this point further.
Question
My hon. Friend congratulated a local company, Toye Kenning and Spencer, on its long-standing role in supplying insignia and medals for the royal family.
Minister reply
The Minister expressed support for British companies like Toye Kenning and Spencer and committed to working with constituents to ensure procurement benefits local manufacturers.
Question
The hon. Member called for a greater share of public procurement to go towards SMEs, citing the British Chambers of Commerce's concerns.
Minister reply
The Minister agreed that more money should go to SMEs and highlighted recent steps such as increasing spending targets across Whitehall.
Amber Valley
Question
My hon. Friend sought additional support for the ceramics industry, specifically citing Denby Pottery's administration.
Minister reply
The Minister acknowledged the importance of Denby Pottery and expressed willingness to work with constituents on further procurement initiatives.
Question
The hon. Member criticised a requirement for businesses seeking government contracts to demonstrate trade union recognition.
Minister reply
The Minister clarified that there is no such requirement in the procurement system and reiterated his commitment to simplifying procurement processes.
Ben Goldsborough
Lab
Question
Referring to his entry in the Register of Members’ Financial Interests, he stressed that £500 million is spent annually on food procurement in the NHS and urged the Government to ensure that British farming and food are backed through the procurement processes.
Minister reply
The Minister agreed that there was a link between food security, national security, and economic security. He stated that reforms would initially focus on four key sectors but expressed willingness to work with MP Goldsborough, the farming industry, and others to explore further possibilities.
Shockat Adam
Lab
Question
He highlighted £37 million-worth of military gear contracted to foreign factories and £23 million-worth of NHS PPE manufactured abroad. He asked the Minister to consider onshoring textile procurement during a cost-of-living crisis.
Minister reply
The Minister acknowledged the importance of supporting British businesses and industries within existing powers, stating that while four sectors had been prioritised initially, he was open to further discussions with Shockat Adam.
Amanda Martin
Con
Question
Welcoming the announcement, she asked how reforms would help Portsmouth benefit from defence, maritime, and energy infrastructure procurement opportunities.
Minister reply
The Minister emphasised the importance of shipbuilding for Portsmouth and other cities. He committed to working with the National Shipbuilding Office to ensure British companies could deliver shipbuilding projects and was willing to meet Amanda Martin to discuss further details.
Alison Bennett
Con
Question
She highlighted PVL, a SME in Burgess Hill that fabricates high-visibility livery for police vehicles and ambulances. She criticised the Procurement Act 2023's rules and requested a visit to discuss challenges.
Minister reply
The Minister expressed willingness to meet Alison Bennett and review the specifics of PVL, acknowledging the company as an example that needed support.
David Smith
Con
Question
He welcomed the Government's commitment to local procurement in public sector food purchases. He asked about connecting these plans with ensuring farm-gate produce is essential.
Minister reply
The Minister emphasised the importance of supporting British farming and building a national plan for food security, expressing willingness to work on specifics with David Smith.
Jim Allister
DUP
Question
He questioned whether procurement principles would be followed by local authorities. He raised concerns about Transport for London buying Chinese buses instead of British-made buses.
Minister reply
The Minister stated he was working with the Department for Transport on this matter and committed to keeping Jim Allister updated.
Question
He congratulated Leigh Ingham on securing the urgent question. He welcomed support for British businesses in his manufacturing town and requested reassurance that social value was being defined correctly.
Minister reply
The Minister confirmed that work had been done with trade unions, businesses, and others to develop guidance, noting pride in achieving cross-sector support.
Iqbal Mohamed
Lab
Question
He welcomed the proposal but raised concerns about Palantir’s ethics and contracts worth hundreds of millions. He questioned transparency and value for money.
Minister reply
The Minister acknowledged that questions were best directed at NHS and MOD Departments, as they led the Palantir contracts.
Jonathan Davies
Lab
Question
Welcoming support for British companies and workers through procurement, he asked about bringing other public sector bodies on board to back automotive trade.
Minister reply
The Minister clarified that reforms would initially apply to Government Departments but expressed willingness to work with local authorities and push for primary legislation.
Jim Shannon
DUP
Strangford
Question
Asked the Minister about Northern Ireland procurement issues, citing a Public Accounts Committee report. Highlighted fragmented procurement systems with nine separate centres and asked how SMEs will be supported amidst conflicting administrative requirements. Also inquired about integrating Tell Us Once digital platform with eTendersNI to prevent bureaucratic burden duplication.
Minister reply
Acknowledged the issue of adding more burdens over time, promising to address specific points through a written response or meeting. Emphasised efforts towards reducing duplication and simplifying systems.
Question
Complimented his neighbour for securing an urgent question and mentioned his ten-minute rule Bill on British bricks, asking if the Minister's outlined changes will promote a “British brick first” approach in public contracts.
Minister reply
Commended the hon. Member’s initiative, noting that while reforms initially focus on four industries, they are open to expanding support for other sectors like brick manufacturing.
Question
Appreciated the Minister's answer and criticised Scotland's procurement practices from SNP-led Government. Highlighted instances of ferry purchases abroad and private bus grants favouring Chinese manufacturers while publicly owned Lothian Buses supports British companies. Also inquired about availability of Jammie Dodgers at the Department.
Minister reply
Acknowledged Scottish Government’s poor use of procurement powers, expressed hope for a Labour-led government to prioritise British jobs, noted interest in considering impact on biscuits but not as initial priority.
Question
Thanked the Minister and asked about how reforms will benefit SMEs in Harlow specifically. Highlighted local businesses like glasshouse growers and a flour mill.
Minister reply
Acknowledged support for SMEs as crucial, pointed out issues faced by the charitable sector in navigating procurement processes due to structural disadvantages.
Shadow Comment
Leigh Ingham
Shadow Comment
The shadow minister welcomed the government's ambition to modernize public procurement, emphasising the importance of backing British businesses, investing in Britain for secure jobs, and remaining community-focused. She requested details on initial steps for implementing these reforms and their impact on manufacturers across constituencies.
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