Procurement Policies Green Book Changes 2020-12-07
2020-12-07
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Response quality
Questions & Answers
Q1
Direct Answer
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Context
The question pertains to the assessment of potential effects on the Department's procurement policies following changes made to the Green Book in November 2020.
What assessment has been made of the potential effect on his Department's procurement policies of the November 2020 changes to the Green Book?
The MOD makes procurement decisions based on security, capability requirement, cost, supply chain and other social value considerations and will continue to do so. The November 2020 changes to the Green Book will ensure that there is an increased focus on setting clear objectives and consideration of location-based impacts. MOD footprint and spend is widely distributed across the UK and future procurement will continue to reflect this.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
The question relates to the Treasury's Green Book rules concerning public procurement and their recognition of economic metrics, such as the multiplier effect of defence spending in UK.
Does my right hon. Friend believe that this will make clear the prosperity metrics, which the Treasury will recognise when it comes to defence procurement, and will the Treasury accept that a pound spent on defence in the UK is worth more than a multiplier of 1 in the levelling-up impact on the UK economy?
My right hon. Friend is absolutely right, especially in that last observation, and I congratulate him on his prosperity report. He was clearly thinking ahead of the Treasury at the time, and I am delighted that it has recognised the importance and contribution that those changes will make to levelling up and closing the north-south divide. While the end-of-year rules were not changed, the recent £24.1 billion multi-year settlement with the Treasury will now allow the MOD to invest in next generation military capability across the whole United Kingdom.
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Assessment & feedback
Specific recognition of prosperity metrics by the Treasury for defence procurement was not directly addressed.
Response accuracy