Government Procurement Strategy Debate

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Department: Cabinet Office

Government Procurement Strategy

Chris Ward Excerpts
Wednesday 22nd April 2026

(1 day, 7 hours ago)

Commons Chamber
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Leigh Ingham Portrait Leigh Ingham (Stafford) (Lab)
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(Urgent Question): To ask the Paymaster General and Minister for the Cabinet Office if he will make a statement on the Government procurement strategy.

Chris Ward Portrait The Parliamentary Secretary, Cabinet Office (Chris Ward)
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Every year this country spends around £400 billion of taxpayers’ money on procurement—and, if we are honest, under the current complex system, we do not always spend it as wisely as we could. That is why just before the Easter recess I announced a major package of reforms to the procurement system, on which I am grateful to have the chance to update the House today. Behind these reforms are three principles: first, that procurement should do much more to protect national security and support British businesses; secondly, that it should deliver a fairer economy; and, thirdly, that it should be simpler, fairer, and open doors to small businesses and charities. Let me address those principles in turn.

This Government believe it matters where things are made and who makes them, so we will issue new guidance for all Government Departments to make use of the national security exemptions in the Procurement Act 2023 to direct procurement to serve the national interest. We will start with four sectors critical to our national security: steel, shipbuilding, energy independence and AI. That will give a clear sign that this Labour Government will back British business, and will use both the weight of our procurement budget and the powers in the Procurement Act to do so. We will also take two further steps to back British businesses. First, Government Departments will now be required to confirm whether prime contractors are using UK steel, and if they are not doing so, they will have to explain why. We will also develop a new shipbuilding framework to restrict Government contracts to British firms where this supports our national security interests.

The second principle of these reforms is that procurement should build a fairer economy, and the truth is that for decades, under successive Governments, we have had a policy that essentially adds up to outsourcing by default. Under this Labour Government, the age of outsourcing will end. We will, in line with our manifesto, introduce a public interest test, which will apply to all Government Departments. They will now be required to assess whether a service can be delivered more effectively in-house, and if it cannot, a clear explanation must be published. Departments will also for the first time be required to publish robust insourcing strategies, setting out how, over the medium term, they will build the capacity to make the biggest wave of insourcing in a generation a reality. This marks a step change in how and who our public services are run by and for, and I am proud that this Labour Government are delivering it.

We will also strengthen the role of social value in procurement. Too often, this has become a mere tick-box exercise and a barrier, not an opportunity, for SMEs and start-ups. Working with trade unions, businesses and others, we will create a new definition of social value that will underpin all Government procurement.

The third principle of these reforms is to make the procurement system simpler and fairer. I have heard too many times how the complexity, duplication and endless form-filling of the current system is among the biggest barriers to SMEs and charities, so we will undertake a rapid review of all existing requirements in the procurement system, and we will see which burdens and duplications can be removed. If they are not essential, we will scrap them. We will enforce a “tell us once” principle—

Lindsay Hoyle Portrait Mr Speaker
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No, you do not look at the clock. You look at me, and you sit down. Ministers have three minutes for responses to urgent questions. I do not know who may have told you differently; there is something wrong in the advice being given. It is three minutes. I presume you are now going to conclude immediately.

Chris Ward Portrait Chris Ward
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Yes. My apologies, Mr Speaker. I was told it was five minutes, but I completely apologise.

Lindsay Hoyle Portrait Mr Speaker
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Order. When I stand up, please sit down—do not remain standing at the Dispatch Box. I am sorry that you were told five minutes, but I think that Ministers should know by now how long they get for a statement or a UQ. It is becoming an impossible situation, where Ministers try to change the rules of the House. These are not my rules; they are the rules of the Back Benches. Please adhere to them.

Chris Ward Portrait Chris Ward
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I can only apologise, Mr Speaker.

In conclusion, these reforms will back British businesses and workers, build a fair economy, and simplify and open up our Government procurement system. There is still much to do, but this is a big step forward and I am grateful to have had the chance to set it out to the House today.

Leigh Ingham Portrait Leigh Ingham
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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?

Chris Ward Portrait Chris Ward
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My hon. Friend has raised the importance of changing the procurement rules with me a number of times—she is a tremendous champion on this. On next steps, the Cabinet Office is working on new guidance that we will put before the House very shortly—I hope before the summer recess—which will make flesh the commitments I have made today. As I say, it has three big principles behind it: backing British businesses, creating a fairer economy and making the system simpler and fairer for all.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

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Mike Wood Portrait Mike Wood (Kingswinford and South Staffordshire) (Con)
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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.

The Government promised transparency through a new online register of commercial agreements. When precisely will that register be live, and will it be comprehensive from day one? Ministers often speak of backing small business. Will the Minister publish in a single, accessible place every Department’s SME target, its latest outturn and whether it is on or off track? On prompt payment, how many suppliers have actually been excluded from major contracts for failing to meet the required standards? If this strategy is truly about value for money, why have the Government still not resolved the fragmentation, poor-quality frameworks and poor use of data and technology that were identified by the National Audit Office?

On national security, contracting authorities are now required to assess risks not just from prime contractors, but from associated persons and subcontractors. How many procurements have been referred for national security consideration, and how many suppliers have been excluded or challenged as a result? What assurances can the Minister give that public contracts are not still flowing into supply chains with links to hostile states? What assessment has the Minister made of the EU’s emerging “Buy European” policies? Is that not a protectionist barrier by the European Union?

Finally, if social value is now mandatory at 10%, what assessment has been made of the risk that it adds cost and complexity, particularly for SMEs? I know that the House will want clear answers.

Chris Ward Portrait Chris Ward
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I thank the hon. Member for those questions—let me try to answer a few of them.

First, on SMEs and Department spend, as I say, part of the aim of this package is to support SMEs and ensure that they have a greater chance of winning contracts. We did publish the departmental spends the day before recess. I know that there was a lot going on, but we have published them; they are there. They show an ambitious step forward. I believe that around £7 billion of Government contracts will go to SMEs as a result of those changes. I am proud of what we are doing; it is the first time that the Government have done it. We have helped drive that through and have worked hard on that.

The hon. Member asked about “Buy European”. That is not in conflict with any of our international agreements or, obviously, with our negotiations with the EU that my right hon. Friend the Minister for the Cabinet Office is leading on, and we work closely on that. At the heart of this package is a recognition that we need to use our procurement budget within international law and international regulations to do more to support our industries. That is the right thing to do, and I hope that we can get cross-party support.

The hon. Member asked about social value. Again, I think he was implying that we are making this mandatory. It is already mandatory and it is already weighted at 10% within the contracting system. I am not changing that; what I am saying is that I am changing the definition of social value so that it does more to support communities and to ensure that it really works, so there is no change on that.

The hon. Member asked me a couple of specific questions about national security. I will get back to him if that is okay, but in general terms, I hope that we can get cross-party support on this. The Procurement Act 2023 was passed with cross-party support and was a step forward, but this is the next big step in trying to ensure that we do much more with that budget to support Britain.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Science, Innovation and Technology Committee.

Chi Onwurah Portrait Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
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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, as happened with Palantir, when there are UK companies that are desperate for that kind of investment?

Chris Ward Portrait Chris Ward
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My hon. Friend brings a huge level of expertise and background experience to the issue. I reassure her that part of the package that I announced before Easter is aimed at helping our sovereign AI industry and our science and technology industries, and boosting start-ups. In the time that I have been doing this job, a lot of the stories that I have heard are about how the procurement rules work fine for companies that have a large procurement department to try to win the contracts, but they are not so good for start-ups or voluntary businesses that are trying to win their way into Government contracts. We should be doing much more to help those companies and, yes, we are joining this up across Government, including through the industrial strategy and the steel strategy that I spoke about earlier.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

Lisa Smart Portrait Lisa Smart (Hazel Grove) (LD)
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We need to do far more to back British small businesses through public procurement, both to boost growth and to ensure our national security. Public procurement amounts to hundreds of billions of pounds a year. The Procurement Act was meant to ensure that more of that money reached British small businesses, but in practice many report that it has made things worse. Payment rules are being flouted by middlemen who face no consequences, suppliers who complain are threatened with losing future work and bad debts are mounting. Public money is disappearing into a vacuum and there is a security risk. There are businesses that are asking, “What is the point of legislation that rogue traders can ignore with complete impunity, while loyal British SMEs are being pushed out of the market they built?” Does the Minister agree that the target for Government spending with small businesses should be far higher than the current level? Will he explain when the payment reporting transparency will implemented?

Chris Ward Portrait Chris Ward
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I basically agree with the hon. Lady’s assessment of the procurement system and how it does not do what it should do. As I say, £400 billion of taxpayer money is being spent. We need to ensure, as far as we can, that every pound that is spent supports British industry, supports jobs and delivers fairness, and it must also support SMEs. The Procurement Act made progress towards helping SMEs, but it does not go far enough. It is not the job of this Government to defend the status quo; it is the job of this Government to change it, so we will do that. I will come back to her on the specific point about payment thresholds.

Gareth Snell Portrait Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
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I congratulate my hon. Friend the Member for Stafford (Leigh Ingham), my Staffordshire neighbour, on securing this urgent question. The Government are taking the right steps towards this procurement strategy, but there is a lot more that could be done if they wanted to truly buy British, back British and build British. That could start with the Government Car Service. The Minister will know from the answers that he has sent to my written parliamentary questions that one third of the Government Car Service uses foreign cars, and that police services in this country use foreign-made cars. He will know that we import bricks to build houses that are paid for by Homes England, which is funded by taxpayers. Will he look at the easy wins that he can make by looking at how the Government are a consumer of products? He could reorientate that spend towards British companies this week.

Chris Ward Portrait Chris Ward
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There are few greater champions of the buy British agenda than my hon. Friend, although there are a few of us in the Government as well. We are trying to make progress on that agenda. What I am setting out today is what I can do with Government guidance and by using the exemptions that already exist in national security restrictions. We have not jumped to legislation; I am trying to use the powers that I have. The point that he is making is about a bigger agenda that I hope we can get to, in order to drive forward more support for British industry. This is the start of it but it is not the end, and we will work with him on doing that.

Julian Lewis Portrait Sir Julian Lewis (New Forest East) (Con)
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Too often consumers buy products that, when they get to examine them, turn out to have been manufactured in places like China. What safeguards do the Government have in their new procurement strategy to ensure that there are no concealed foreign supply chain components in the contracts that they intend to award? Why are the SMEs—or any companies—that are bidding having to demonstrate trade union recognition if they might have a workforce that do not require that?

Chris Ward Portrait Chris Ward
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On the right hon. Gentleman’s first point, we have robust processes in place on supply chains, which the Department for Business and Trade leads on. The announcement that I made before Easter does not change that; the strategy sticks with the existing protections that we have under the Procurement Act regulations. What I am talking about here is how we can use those powers to direct Departments and use Government buying power to do more.

On the right hon. Gentleman’s point about union recognition, I am sorry but I missed the very end of his question. There is nothing in the strategy that changes union recognition within the procurement system—that can already be weighted within the social value requirement—but it takes an important step on insourcing for Government Departments. I am incredibly proud that this Government are doing that and it is part of the manifesto on which we were elected.

Kirsteen Sullivan Portrait Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)
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I thank the Minister for the changes, which are a welcome vote of confidence in UK business and industry. I welcome the rapid review of existing requirements that we know can slow down the procurement process, leading to frustration and inefficiencies all around. Ahead of International Workers’ Memorial Day, will he commit to having inclusive personal protective equipment as a specification in any new public sector procurement contract, and lead the way on improving workplace safety?

Chris Ward Portrait Chris Ward
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This is not the first time that my hon. Friend has raised this issue and we have met to discuss it. She is championing this important matter that addresses an inequity that is felt by many workers. The Cabinet Office is working on this point. At the moment, our view is that mandation is not the right way forward and that we can work with industry to try to roll this out. Equalities law already offers protections and should ensure that such PPE is delivered, but I accept that that is not always happening—my hon. Friend has made that case incredibly powerfully—and I am keen to keep working with her, the GMB and others on this issue.

James Wild Portrait James Wild (North West Norfolk) (Con)
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Some £400 billion was spent on public procurement last year, so I would like to ask the Minister a question that I asked his predecessor over a year ago, which she was unable to answer then: what is the Government’s precise savings target from that budget?

Chris Ward Portrait Chris Ward
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What an excellent question! I am afraid that I will have to get back to the hon. Gentleman as I do not know the answer—[Interruption.] None of the measures in the announcement that I have made require additional Treasury funding—they are within existing budgets—but the point that he makes is a good one, so I will come back to him, if that is okay.

Rachel Taylor Portrait Rachel Taylor (North Warwickshire and Bedworth) (Lab)
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Will the Minister join me in congratulating Bedworth company Toye, Kenning and Spencer on its proud history of ribbon weaving and supplying ribbons for insignia and medals to the Queen, the King and the Government for many years? Will he tell me how the procurement strategy will help other local manufacturers in North Warwickshire and Bedworth?

Chris Ward Portrait Chris Ward
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I certainly can. I thank my hon. Friend for raising that company. It is exactly the kind of British company that we want to help and back, and such communities should have a real stake in how procurement money is used. I hope that we can do more on that, and I am happy to take up this specific point and this specific company with her.

Joshua Reynolds Portrait Mr Joshua Reynolds (Maidenhead) (LD)
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On the Business and Trade Committee, we have heard time and again that if we want to transform the economic health of small and medium-sized enterprises, we need to direct a greater share of public procurement towards them. However, the British Chambers of Commerce has said that we are “stuck in a rut” at 20% of spending going to SMEs. What is the Minister doing to join up the approach across Whitehall to ensure that a greater amount of spending goes to SMEs?

Chris Ward Portrait Chris Ward
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I agree that more money from the procurement budget should be going to SMEs, and we are already taking steps to do that. We have announced powers so that contracts can be reserved in local communities and we have increased the amount of Government spending. As I have said, the spending targets across Whitehall mean that for the first time over £7 billion of Government money will now go to SMEs. I am working closely with the Federation of Small Businesses and lots of small businesses on that. I thank the FSB and others because the reforms announced today, which are aimed at supporting SMEs and voluntary sector organisations, have been designed in collaboration with them. They know that the system is not working, just as I know it is not working, and we need to get more money down to those businesses. So we have done a bit—we have done a lot of stuff—but there is a lot more do to, and the strategy is part of that.

Linsey Farnsworth Portrait Linsey Farnsworth (Amber Valley) (Lab)
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As the Member for Amber Valley, I represent Denby Pottery, which sadly is in administration and I am desperately trying to save it. It is a joy in this House to use crockery made in the UK, and I welcome the Minister’s recent announcement on procurement, but I have written to ask him to go further by including ceramics—I look forward to receiving his response in due course. May I take this opportunity to repeat my request so that we do not lose a whole sector by degree?

Chris Ward Portrait Chris Ward
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I appreciate how important Denby Pottery is to my hon. Friend’s constituency and how difficult it will be for workers there at the moment. I understand that Government officials have been working with Denby Pottery in recent weeks to ensure that support is in place as the administration process unfolds, and I hope that will support the workers affected as much as possible. I think she will have some support from Members on the Bench behind her on the broader point about the ceramics industry. In this package I have announced that we will look at the four sectors that are immediately critical to national security using the existing powers we have. That is not where I want to stop, but it is what I can do at the moment. I want to go further, and I am very happy to work with my hon. Friend and others to try to do so.

Ashley Fox Portrait Sir Ashley Fox (Bridgwater) (Con)
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The Minister is right to try to support small businesses by cutting red tape, but will he explain why, while he is saying this at the Dispatch Box, another part of Government is requiring any business seeking a Government contract to demonstrate trade union recognition? Does he accept that that is completely irrelevant as to whether a business provides a good service and good value for money? Does he appreciate that that only imposes additional costs on businesses?

Chris Ward Portrait Chris Ward
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Trade union rights are not inconsistent with what I am setting out. I am sorry, but I do not know what point the hon. Gentleman is making, because there is no requirement to have trade union recognition in Government contracts in the procurement system. I am not changing that or how that plays out; I am trying to simplify the system and remove burdens where I can. I am trying to look at the procurement system from start to finish, strip out all the duplication and erroneous stuff that has crept in and made it like a Christmas tree over time, and make it simpler and fairer. That will happen at the same time as ensuring that we deliver the generation of insourcing that this Government were elected to do, which can bring to an end decades of outsourcing by default.

Ben Goldsborough Portrait Ben Goldsborough (South Norfolk) (Lab)
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I refer the House to my entry in the Register of Members’ Financial Interests. An important aspect of Government spending is food procurement in the NHS, on which £500 million is spent every year in England alone. May I stress to the Government that we must ensure that we back British farming and British food and ensure that the processes we are undertaking support our British farmers?

Chris Ward Portrait Chris Ward
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My hon. Friend is absolutely right. There is a link between food security, national security and economic security, which is an increasingly important part. The reforms that we have announced deal, in the first instance, with the four sectors that we feel are the most immediately available with the powers we have, but that is not where we want to end. I am happy to work with him, the farming industry and others to see what more we can do.

Shockat Adam Portrait Shockat Adam (Leicester South) (Ind)
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I appreciate much of the statement that the Minister has made regarding procurement. I will deflect his attention to textile procurement, especially as the Ministry of Defence has contracted £37 million-worth of military gear to foreign factories, including in China. Some £23 million-worth of NHS personal protective equipment is manufactured abroad. All the while, my constituency has factories and a workforce, and we are ready. We are suffering with a cost of living crisis, so can I ask the Minister to consider onshoring textile procurement?

Chris Ward Portrait Chris Ward
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Yes, the hon. Gentleman can. As he can clearly detect from what I am trying to say, the thrust is that I want to do more to support British businesses and industries, and I want to ensure that we are doing everything we can within the existing powers to do that. We have set out four sectors in which we feel we can do that straightaway, and I am sure there are others that we can look at. I am happy to work with him on that.

Amanda Martin Portrait Amanda Martin (Portsmouth North) (Lab)
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Like me, many in Portsmouth will welcome today’s announcement, particularly the new shipbuilding framework and the commitment to reward bids that deliver local jobs and skills. Will the Minister outline today—and meet me to discuss—how these reforms will help to ensure that cities such as Portsmouth, from which shipbuilding was removed by the Tories, can once again share in defence, maritime and energy infrastructure, and benefit from AI procurement opportunities?

Chris Ward Portrait Chris Ward
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My hon. Friend makes an excellent point. Obviously the shipbuilding industry is incredibly important for her constituency and for others around the country, and specific points in this package are designed to support that. To re-emphasise, we will work with the National Shipbuilding Office to try to work on a specific framework to ensure that we can direct procurement to British companies to deliver shipbuilding. For too long that has not happened, and we have seen in recent weeks and months the importance of having a sovereign capacity to do that. Portsmouth is a fine place to try to do so, as are other places around the country—I should not get too far into that. That is one of the reasons we picked shipbuilding early on and why we will work with the NSO to try to do that, and I am happy to meet with my hon. Friend.

Alison Bennett Portrait Alison Bennett (Mid Sussex) (LD)
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PVL is a SME in Burgess Hill that fabricates high-visibility livery, supplying 80% of police vehicles and 40% of ambulances. It is being hammered by the rules enacted in the Procurement Act 2023. Converters are the middlemen who take a regular vehicle and turn it into an emergency appliance. The 30-day payment terms set out in the Act are not enforceable. New tendering requirements cost time and money, but converters are under no obligation to use approved suppliers, and converters often go out of business owing money to the rest of the supply chain. That is a colossal waste of public sector money. Will the Minister agree to visit PVL, which is just over the border from his constituency, so that we can discuss these challenges?

Chris Ward Portrait Chris Ward
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It is always nice to have a kind invitation to come up the road to Burgess Hill. The hon. Lady raises a really good point. I do not know the specifics of the company, but she raises exactly the kind of case that we should be trying to support. I am happy to meet, and if she sends me the details of the company, I will look into that.

David Smith Portrait David Smith (North Northumberland) (Lab)
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I warmly welcome the Minister’s statement. For many years it has seemed to me that while our European partners have been able to have significant sovereign procurement programmes, we have so often tied ourselves up in knots and been unable to do the same. My hon. Friend the Member for South Norfolk (Ben Goldsborough) slightly gazumped me with his question. The Government have a commitment to ensure that half of all food purchased across the public sector is locally produced or certified, so what can we do to connect the Minister’s plans with cutting out the middleman and ensuring that farm-gate produce is essential to our procurement programme?

Chris Ward Portrait Chris Ward
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Building on that previous point, it is really important that we do as much as we can to support British farming and have a national plan for food security. I am happy to take up the specifics and to work with my hon. Friend and the Department for Environment, Food and Rural Affairs on that.

Jim Allister Portrait Jim Allister (North Antrim) (TUV)
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Is there an expectation that the procurement principles enunciated today will be followed through with local authorities? If so, can we expect to see an end to the scandal of bodies such as Transport for London buying Chinese buses, rather than British-made buses? Are we going to do anything about that?

Chris Ward Portrait Chris Ward
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I would very much like to do so. I have spoken with the Department for Transport about this. This is a broader issue about how we work with regional authorities and within our system of devolution, because that is where the power lies for some of these decisions. I am working with the Department for Transport on this matter, and I am happy to keep the hon. and learned Gentleman updated on it.

Chris Bloore Portrait Chris Bloore (Redditch) (Lab)
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I congratulate my hon. Friend the Member for Stafford (Leigh Ingham) on securing this important urgent question, and I thank the Minister for his statement. Businesses in my constituency—a manufacturing town—strongly welcome this new approach, and we should be unashamedly proud to back our British businesses. Can the Minister reassure me that he is speaking to small businesses, local authorities and our trade union colleagues on defining social value so that we get this right and truly and proudly back British businesses for the future?

Chris Ward Portrait Chris Ward
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Absolutely. We should be much prouder, as a Government and as a political party, about supporting British businesses and local communities. That is what I am trying to do with this statement. On working with others, I have been working on this matter for many months, as did my predecessor—we have worked on this matter with trade unions, businesses, voluntary sector groups and charities. The proposals that I have brought forward are an amalgam, but they are not the end of the road. Work will be done with the unions, businesses and so on to try to get the guidance right and put these through. I should also say that one of the reasons I am particularly proud of some of this work is that it has been welcomed both by trade unions and by businesses. It is not often that that happens these days, and I am particularly pleased that we have managed to achieve it.

Iqbal Mohamed Portrait Iqbal Mohamed (Dewsbury and Batley) (Ind)
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I also welcome the Minister’s response to the urgent question and the proposal to go British first in our procurement strategy, with over £400 billion spent per year. The Minister is no doubt aware that Members across this House, including myself, have repeatedly raised concerns about Palantir’s ethics, its record of complicity in human rights abuses, including the genocide in Gaza, and the way it has secured extremely large public contracts here in the UK. Can he explain how awarding hundreds of millions of pounds—in many instances with no full, open tender process—to a single US surveillance and technology firm, which over the weekend released a dystopian manifesto for world domination, is compatible with a modern procurement strategy that claims to have transparency, value for money and the public interest at its heart?

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Chris Ward Portrait Chris Ward
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The hon. Member is right to say that part of what I am trying to do is support British businesses and reduce our reliance on others. On his specific point about Palantir, the two contracts to which he refers are NHS and Ministry of Defence-led contracts, so his questions are probably best directed at those Departments. If he wants to write to me, I am happy to try to pick that up as well, but they are NHS and MOD contracts. They did go through the procurement process, but those were the lead Departments.

Jonathan Davies Portrait Jonathan Davies (Mid Derbyshire) (Lab)
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I very much welcome what the Minister has said about the principles behind how we will use £400 billion of Government procurement to back companies up and down this country, and the workers behind them, by buying British. However, of course, many billions of pounds more are spent across the wider public sector, including by local authorities, the NHS and the police. Can the Minister tell me more about what he will be doing to bring those other bits of the public sector on board as he develops this process, especially to back the automotive trade?

Chris Ward Portrait Chris Ward
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My hon. Friend is absolutely right. To clarify, the guidance that we are bringing forward and the reforms that I am talking about today will apply to Government Departments, not to the broader public sector. That is because Ministers and the Government do not have the power to direct beyond Government through mere guidance—I would need primary legislation to do so. That is something we are pushing very hard on, and I hope that legislation will come forward in a future Session. However, what I hope everybody notes, including the market and local authorities, is that the reforms I am announcing today are the reforms that I want to see rolled out across the public sector, working with local authorities as well. We want to test and learn in Government and roll out these reforms more widely, but that would require primary legislation.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I want to ask the Minister a very specific question about Northern Ireland. In light of the recent Public Accounts Committee report that has highlighted the fragmented nature of procurement in Northern Ireland, with nine separate centres of procurement expertise, what steps can he take to ensure that SMEs, which he mentioned earlier, are not further disadvantaged by conflicting administrative requirements across those bodies? How will the promised Tell Us Once digital platform be successfully integrated with Northern Ireland’s existing eTendersNI system to prevent duplication of the bureaucratic burden on small firms that are struggling?

Chris Ward Portrait Chris Ward
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The hon. Gentleman raises a really good point. As I said, one of the three principles behind this strategy is to reduce duplication, reduce burdens and simplify the system. My feeling in general is that over the years, the people who have held my job have added more and more bits to the Christmas tree, making it more and more unwieldy, and I want to try to strip that back. If it is okay with the hon. Gentleman, I will ask him to write to me about his specific points, and I will pick them up. I am very happy to meet him to discuss those points as well.

Adam Jogee Portrait Adam Jogee (Newcastle-under-Lyme) (Lab)
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I congratulate my constituency neighbour, my hon. Friend the Member for Stafford (Leigh Ingham), on securing this urgent question.

In Newcastle-under-Lyme, we make excellent British bricks at Ibstock in Chesterton, and I draw the Minister’s attention to my ten-minute rule Bill on British bricks. Will he take the opportunity to confirm today that the changes he has outlined will result in a “British brick first” approach to public contracts as we build the homes, community centres, schools and hospitals that our communities desperately need?

Chris Ward Portrait Chris Ward
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I congratulate my hon. Friend on his ten-minute rule Bill. He has raised an important issue, one that is obviously incredibly important to his constituency and many others. As I say, we are starting with the four industries I have set out today, but we will look at others going forward, and I would be happy to talk with him and see what more we can do in future.

Scott Arthur Portrait Dr Scott Arthur (Edinburgh South West) (Lab)
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I thank the Minister for his answer to the urgent question. It is common sense that we use the Government’s procurement power to support British jobs, but sadly that common sense is lacking in Scotland, where the Scottish Government are buying ferries from Poland, Turkey and China. Yesterday, Unite highlighted that the Scottish Government have given a grant to private bus companies in Scotland to buy 166 buses from China; meanwhile, publicly owned Lothian Buses is using its share of the grant to buy buses from the fantastic Alexander Dennis Ltd. Does the Minister join me in hoping that on 7 May, Scotland will vote Labour to elect a Government who put British jobs first?

I have a Fox’s Burton’s Companies UK biscuit factory in my constituency, which makes a delicacy known as the Jammie Dodger biscuit. Will this change make it more likely that when I next visit the Minister’s Department, Jammie Dodger biscuits will be available to me?

Chris Ward Portrait Chris Ward
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I have to say that of all the questions I was mulling over when I was going through this, the impact on Jammie Dodgers was not top of my list, but maybe it should have been—I will think about that. My hon. Friend makes a good point about how the Scottish Government have not used their procurement powers well enough over the years, and the fiascos he highlighted demonstrate that. It is a shame that no one from the SNP is in the Chamber to hear what he says, but it is good that Labour MPs are present to make the case for doing more to support jobs in Scotland.

Chris Vince Portrait Chris Vince (Harlow) (Lab/Co-op)
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I thank the Minister for his response to the urgent question tabled by the hon. Member for Stafford, Eccleshall and the villages, my hon. Friend the Member for Stafford (Leigh Ingham). Can the Minister tell the House how this Labour Government’s reforms to public procurement will unlock hundreds of millions of pounds for our SMEs and, in particular, how they will benefit SMEs in Harlow?

In response to other hon. Friends, the Minister mentioned food security. Sadly, we do not make Jammie Dodgers in Harlow—maybe we can have a conversation about that—but although it is important that we support our farming industry, I also draw to the Minister’s attention the Lea Valley growers in my constituency, who are glasshouse growers, and Wright’s Flour, which is our flour mill.

Chris Ward Portrait Chris Ward
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I thank my hon. Friend for his question—he has raised a number of points. He talked about supporting SMEs, which is incredibly important to what the Government are trying to do more broadly, and specifically to what these reforms are trying to do.

If you will permit me, Madam Deputy Speaker, I also want to point out that we should do more to support the voluntary sector. In my opinion, the charitable sector does not get a fair enough crack at this, and the system is weighted against it. In particular, I have in mind a visit I made to a women’s centre in my constituency, in Brighton, a fantastic charity that has been doing amazing work for a long time. It told me that it was spending £30,000 to £35,000 on a procurement process, having to divert resources that should be used to support people in real need in order to compete in a procurement process that is stacked against it because the big companies and the big providers have the money and expertise they need. We cannot defend that kind of status quo, and I will not do so, which is why we are trying to introduce this strategy.

Joshua Reynolds Portrait Mr Joshua Reynolds
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On a point of order, Madam Deputy Speaker. The Parliamentary Secretary to the Cabinet Office was asked several times about trade union requirements in public procurement contracts, yet Hansard records him as saying on 4 December that

“The Government’s social value model provides opportunities to reward suppliers that recognise a trade union”.—[Official Report, 4 December 2025; Vol. 776, c. 1144.]

Could I seek your guidance as to how I could ask the Minister to confirm those two points together?

Judith Cummins Portrait Madam Deputy Speaker (Judith Cummins)
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Minister, would you like to respond?

Chris Ward Portrait Chris Ward
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I would just point out that an opportunity is not a requirement. The question I was being posed was about a requirement to recognise trade unions—that is not the same as an opportunity to reflect that within the system. That is the difference between those statements, and as I have said, nothing in the strategy changes the status of trade unions within the procurement system. What it does is deliver on our really important manifesto commitment to end the age of outsourcing and bring more work in-house.