Chris Ward
Main Page: Chris Ward (Labour - Brighton Kemptown and Peacehaven)Department Debates - View all Chris Ward's debates with the Cabinet Office
(1 month, 1 week ago)
Commons Chamber
The Parliamentary Secretary, Cabinet Office (Chris Ward)
This Government are determined to ensure that public procurement backs small and medium-sized businesses. That is why we have strengthened late payment rules, have set ambitious targets for all Departments to spend more with small and medium-sized enterprises—totalling £7 billion by 2028—and are simplifying the entire system to ensure that SMEs get a fairer crack. We are working with the Federation of Small Businesses on this, and there is much more to come.
Harpreet Uppal
This week I welcomed Antich & Sons to Parliament. It is a family-owned textiles company that, for the past decade, has been innovating by using traditional local skills and methods to develop 3D weaving techniques and provide cutting-edge advanced material solutions. Given how that aligns with the industrial strategy and the northern growth strategy, what are this Government doing to help companies like Antich & Sons access procurement processes?
Chris Ward
My hon. Friend is absolutely right to highlight small businesses like the one in her constituency. As I announced in March, small businesses will now receive just over £7 billion a year from government procurement, as a result of reforms that we have put in place. That will support the industrial strategy that she mentioned. It will mean more money, jobs and opportunities in local communities—a lot done, and a lot more to do in this space.
Dellner Glass Solutions, one of the SMEs in my constituency of Blaydon and Consett, has been manufacturing aluminium and glass fabrications for over 50 years. It supplies window and door systems to the UK’s world-leading bus manufacturing market. What steps is the Minister taking to ensure that reforms to public procurement support the growth of companies like Dellner Glass Solutions across the UK bus manufacturing supply chain?
Chris Ward
A number of colleagues, including my hon. Friend the Member for Falkirk (Euan Stainbank), have raised this subject several times with me, and I am working with Department for Transport colleagues to see what more we can do to support British manufacturers, but we are already acting. We have announced a 10-year pipeline with over £70 million of funding for zero emission buses. We are also working on redefining social value to ensure that it does more to support local communities and local jobs. That should help companies like Dellner Glass Solutions stand out when it comes to public procurement.
Sir Ashley Fox (Bridgwater) (Con)
Will the Minister confirm whether these reforms will apply to the provision of services to prisons? This year, the Ministry of Justice will commission 25% fewer hours of education and training in our prisons, not because of a cut in the budget, but because of an increase in the unit price. The Ministry of Justice requires providers to offer a very large minimum number of hours in order to bid for contracts. If he allowed small businesses to bid to provide education and training in just one prison, the Ministry would get a lot more value for money.
Chris Ward
I thank the hon. Member for that; it is a really good question. The reforms that we have introduced apply to all Departments, and the MOJ is obviously signed up to them. I have discussed this with the POA and a couple of other related organisations. If it is okay with him, I will ask colleagues in the Ministry of Justice about this and get back to him on the specifics.
Clive Jones (Wokingham) (LD)
Public procurement must do more to support SMEs in Wokingham and across the UK who are doing their best to grow, despite what many see as a lack of help from the Government. In defence, only 5% of the procurement budget is allocated to SMEs. How will the Government change public procurement to benefit SMEs and the economy?
Chris Ward
The hon. Member is absolutely right that we need to do more to support SMEs, and that we need to use our procurement budget to do that. I have announced some of the steps that we have already taken. In fact, just last week, we announced new guidance, both to ensure that, in sectors such as steel and shipping, more contracts go to British companies, and to help small and medium-sized businesses. That is just the start. We need to go much further—I am not challenging that at all—but we are taking big steps. In the last few years, we have come a long way, but hopefully we can go further.
Ms Julie Minns (Carlisle) (Lab)
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The Parliamentary Secretary, Cabinet Office (Chris Ward)
This Labour Government believe that it matters where things are made, and who makes them. Last week, I published new guidance to ensure that the full weight of our £400 billion procurement budget protects national security and backs British business. The guidance applies to four sectors initially—steel, shipbuilding, AI and energy infrastructure—and it will help secure our critical UK industries and boost growth across the country.
Jayne Kirkham
A&P Falmouth, now owned by Balaena, at Falmouth docks in my constituency, bid for a maintenance and repair contract for the Sir David Attenborough research vessel from UK Research and Innovation. Despite the company’s experience—the vessel was built at its sister yard, up in Teesside—and a strong bid, it narrowly missed out. The contract went to a Danish shipyard, under post-Brexit Conservative procurement rules. Despite not employing people in the UK, the Danish shipyard was marked up on social value criteria. A&P Falmouth would have employed local apprentices to do the work on the ship. Will the Minister confirm that under the procurement rules that we are introducing, British shipyards will be prioritised for British work?
Chris Ward
My hon. Friend is right to raise this issue. She has raised it with me previously, and she is a fantastic champion for her constituents. As she knows, I am working with the National Shipbuilding Office to bring forward the new rules. Shipbuilding is one of the areas that we are prioritising. Unfortunately, this procurement took place before the guidance came in, and it shows why the guidance is so necessary. It allows us to protect British national security and support shipyards, such as the one in her constituency. I reassure her constituents that the steps that the Government have taken will mean that more contracts, business and jobs come to constituencies like hers.
Pam Cox (Colchester) (Lab)
It is encouraging to hear that SMEs will benefit from greater access to Government procurement routes. Can the Minister set out which kind of sectors in particular they think will benefit the most, because that will be of great interest to people in Colchester and the east of England?
The Parliamentary Secretary, Cabinet Office (Chris Ward)
There are four sectors where we are using national security guidance, but the support for SMEs is much broader, too. I will happily talk to my hon. Friend and come back to her on particular parts of her constituency, but this plan will be nationwide, supporting all parts of the country, with more than £7 billion of Government money going to SMEs.
Tessa Munt (Wells and Mendip Hills) (LD)
Food security is national security, and I am glad that the Government recognised that earlier this year. It is critical national infrastructure. As the Government pursue their building of 1.5 million homes, with which I absolutely agree, can we make sure that the Minister’s Department talks to other Departments across Government so that we do not lose valuable agricultural land? We are already importing 55% of our food, and this house building could undermine the UK’s already fragile food sector.
In Northern Ireland, a 2024 study found that only around one fifth of direct public procurement spend across the wider public sector is awarded to small businesses. Given the reliance on smaller businesses in Northern Ireland, what steps will the Minister take with Cabinet colleagues to improve their access to public procurement?
The Parliamentary Secretary, Cabinet Office (Chris Ward)
We are taking a number of steps to improve SME access to Government procurement, and I outlined those earlier. If it is okay with the hon. Gentleman, I will write to him about the specific measures we are taking in Northern Ireland, but we are working across the United Kingdom to ensure that our procurement budget does everything possible to support SMEs.
I, too, hope that digital ID will help improve the delivery of public services outcomes. Can the Minister please say what steps the Government are taking to work with the Welsh Government on this important policy development?
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
As a previous chair of a local government pension scheme, I was really pleased to hear that the Government are going to bring catering, security, cleaning staff, porters and repair people back into Government Departments. Does the Minister agree that that is the right thing to do and is beneficial for those workers, particularly given the situation with their pensions and the other things that they should have had access to in the first place?
Chris Ward
I absolutely do. We announced last week that we will bring all Government Property Agency, catering and security services back in-house, or at least that it is our intention to do that. We were elected on a manifesto promise to deliver the biggest wave of insourcing in a generation, and we are going to start it at our own door—70 Whitehall, No. 10 and No. 11—but I would like to go further and roll this out across local government as and when we can.
Brexit has created a number of serious barriers to the ability of UK artists to tour in Europe. Has the Minister had a chance to look at the recently published Culture, Media and Sport Committee report on this issue, which proposes a number of practical measures to remove those barriers, and will he work with CMS Ministers to act on its recommendations?
Euan Stainbank (Falkirk) (Lab)
Following the Government’s welcome designation of four sectors as critical to national security, we have continued to see an exponential rise in under-investigation Chinese buses on our streets. In my constituency, 125 jobs were put at risk back in March following an SNP grant scheme that sent the lion’s share of the public money to Chinese manufacturers. I will repeat the question I asked the Prime Minister a few weeks ago: will the Minister designate bus manufacturing as a sector critical to national security?
Chris Ward
As I said earlier, my hon. Friend has raised this with me a number of times, and he is absolutely right to do so. I have spoken with the Department for Transport and security teams about this, and we are looking at it. We have started with four sectors and we want to go further. We are also taking a lot of other steps to help the bus manufacturing industry, as I set out earlier.