Oral Answers to Questions

Sarah Olney Excerpts

Thursday 21st May 2026 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The Government announced their intention in the industrial strategy to use their procurement power to shape markets for innovation in the longer term. Tech start-ups in my constituency complain that the process of getting Government contracts is slow, risk-averse and structurally biased in its financial viability tests and paperwork requirements towards incumbents and US suppliers. As one of them put it to me, no one gets sacked for buying IBM. That surely prevents the Government from achieving their goal of greater innovation. What conversations is the Minister having with his Cabinet Office counterparts to ensure that our ambitious home-grown small and medium-sized enterprises are not being squeezed out of the competition for public contracts that could provide these firms with valuable growth opportunities and the innovation that our economy and public services so badly need?

[Chris McDonald]

The hon. Member raises an extremely important point: Government procurement can, of course, be an important lever for growing our economy. Whereas previous Governments used the fig leaf of being in the EU as an excuse to buy things from overseas simply because they were a penny cheaper, this Government are committed to ensuring that as much as possible of UK taxpayers’ money is spent in the UK.

The hon. Member asks what discussions I am having with Cabinet Office colleagues. I am having discussions with colleagues in the Cabinet Office, the Home Department, the Ministry of Defence and across Government, because there is a commitment among Ministers to ensure that Government procurement is targeted at British companies. My right hon. Friend the Secretary of State has made a strong commitment to reduce regulation and bureaucracy, so we can ensure that these contracts are awarded more efficiently and more easily to small businesses in the UK.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

According to reports in both the Financial Times and The Times, the Government have asked supermarket retailers to reduce the price of essential food items, such as milk, bread and eggs. The chief executive officer of Marks & Spencer has described the proposals as “completely preposterous”. Can the Secretary of State confirm that instead of trying to impose price controls on private businesses, his Department will look to reduce the cost of Government-imposed burdens on retailers, such as business rates, national insurance contributions and energy costs?

[Peter Kyle]

There will be no price cap and there will be no price controls, but I am not going to apologise for throwing everything and the kitchen sink at the cost of living challenges that we inherited, along with an economy that was broken.