British Industry and Services: Public Procurement

Lord Spellar Excerpts

Tuesday 7th July 2026 Lords Chamber

Asked by

[Lord Spellar]

To ask His Majesty’s Government what is their policy on prioritising British industry and services when carrying out public procurement.

[The Parliamentary Secretary, Cabinet Office (Baroness Anderson of Stoke-on-Trent) (Lab)]

My Lords, on 26 March, the Government announced procurement reforms to protect our national security, boost growth and build a fairer economy. We have now moved from policy direction to delivery. As of last month, government departments can make use of the national security exemption in the Procurement Act 2023, where relevant. We also introduced a public interest test for departments to formally assess whether their services can be delivered more effectively in-house and have requested all government departments to develop insourcing plans.

[Lord Spellar (Lab)]

I thank my noble friend the Minister for that reply, but that memo is not getting through to government departments. Time and again, they are giving preference to firms and workforces from overseas rather than British industry and services. We talk a lot in this House about government as regulator, government as legislator and government as policymaker. Is it not time for the role of government as customer to come forward so that we can re-industrialise Britain, as has been made very clear by the incoming Prime Minister? Can she get through to her department and the Treasury that there is a new sheriff in town, and we want to see a rapid change of direction?

Civil Service Pension Scheme

Lord Spellar Excerpts

Tuesday 30th June 2026 Lords Chamber

[Baroness Anderson of Stoke-on-Trent (Lab)]

I thank my noble friend. We have already withheld nearly £10 million in transition contract payments for undelivered milestones from Capita. This represents our continuous position that public funds will only ever pay for what is successfully delivered to the required standard, and this figure is not the sum total of withheld payments across the wider contract lifecycle. This is obviously only stage 1. I look forward to being able to further update your Lordships’ House next week.

[Lord Spellar (Lab)]

My Lords, is not the systemic failure here that the Civil Service refused to take past performance into account? That is completely contrary to normal life. If someone did a job on your house or on your car and failed, or if you took a holiday with a company that failed, not only would you not use them again but you would advise everybody else not to. If we want only one example, it was the Capita failure on the Army recruitment programme, which was an utter disaster for service recruitment. Is it not time that we changed that so that past performance counted? That would focus the attention of management on fulfilling the contracts they have got rather than on the contracts they hope to get.

[Baroness Anderson of Stoke-on-Trent (Lab)]

I thank my noble friend—I think. He is absolutely right. He and I were members of the Defence Select Committee in the other place and discussed the terms of the recruitment contract for the Armed Forces in great detail. There have clearly been challenges in the past, but I remind noble Lords that Capita is meeting 87% of its KPIs on other contracts. However, the issue that the noble Lord has raised is incredibly important. Given that, only last week, the Cabinet Office issued a Written Ministerial Statement making clear our insourcing drive and the public interest test, I hope all these factors are brought into account.