Government Procurement Strategy

Debate between Chris Ward and Mike Wood

Wednesday 22nd April 2026 Commons Chamber

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

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]

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.

Oral Answers to Questions

Debate between Chris Ward and Mike Wood

Thursday 22nd January 2026 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

In his statement last month, the Paymaster General promised us that he had secured a great deal for the first year of the Erasmus programme. It is a technique that will be familiar to mobile phone and satellite TV customers around the country. Can the Minister tell us what the Paymaster General could not tell us in that statement: what will it cost in the second and subsequent years?

[Chris Ward]

It is a one-year agreement, as the hon. Gentleman knows, and we have negotiated a 30% discount. That is a good deal. It will be reviewed after 10 months, as he knows. At its heart, the programme is about opportunities for young people from all backgrounds—youth workers, sports professionals, universities and so on. If the Conservative party really wants to fight the next election promising to take that away and to narrow opportunities, I am afraid that it is making a big mistake —on this, as on so much else.

[Mike Wood]

I think the Minister has given the game away: he has just said that it would be wrong to walk away from that. He will know, as the whole House knows, that any negotiation is successful only if you know, and more importantly your negotiating partners know, that there is an alternative to a negotiated agreement. Can the Minister assure the House that, if the European Union is not able to offer similar terms and similar cost for second and subsequent years, he would be prepared to walk away from the negotiations?