Government Procurement Strategy

Leigh Ingham Excerpts

Wednesday 22nd April 2026 Commons Chamber

12.39 pm

[Leigh Ingham (Stafford) (Lab)]

(Urgent Question): To ask the Paymaster General and Minister for the Cabinet Office if he will make a statement on the Government procurement strategy.

[The Parliamentary Secretary, Cabinet Office (Chris Ward)]

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—

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[Chris Ward]

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]

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]

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.