Overseas Companies: UK-registered Subsidiaries

Lord Sharpe of Epsom Excerpts

Monday 17th March 2025 Lords Chamber

Asked by

[Lord Sharpe of Epsom]

To ask His Majesty’s Government whether they provide support or advice to companies domiciled overseas who have set up a UK-registered subsidiary through which to bid for public sector work.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, before answering the noble Lord’s Question, I wish everyone celebrating a happy St Valentine’s day—

[Lord Leong (Lab)]

Wrong day. I wish everyone a happy St Patrick’s day.

The Government provide guidance on GOV.UK to companies seeking to engage in public sector work, including those domiciled overseas which establish a UK-registered company. Additionally, the Government encourage open and fair competition in public procurement, and UK-registered subsidiaries of foreign companies are treated in the same manner as domestic businesses.

[Lord Sharpe of Epsom (Con)]

I am grateful to the Minister for his Answer. I agree that it is essential that transparency is key to all of this, especially in the defence and security sectors, where I am sure the Minister would agree that a level playing field is absolutely necessary. However, are the Government aware that some non-UK enterprises with only a token presence in the UK seek defence and security work here, and that some of those firms are domiciled in foreign states which actively exclude British companies from competing for contracts under that state’s control? What assurances can the Minister give that British contractors are not the victims of such unacceptable commercial discrimination?

[Lord Leong (Lab)]

I thank the noble Lord for the question. The UK’s international obligations require us to treat suppliers from other countries on an equal footing with UK suppliers in procurements which are covered by trade agreements with those countries and under WTO arrangements. The requirement for fair and open competition is a two-way street, as it gives UK suppliers access to public procurement opportunities overseas, which is worth close to £1.3 trillion. If the noble Lord has a particular case in mind, perhaps he could speak to me, and I will refer it to officials in the department.