Iron and Steel: Procurement

(asked on 30th December 2020) - View Source

Question to the Cabinet Office:

To ask the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office, what assessment has he made of the effect of the UK-EU Trade and Cooperation Agreement on the Government's ability to procure more UK-made steel.


Answered by
Julia Lopez Portrait
Julia Lopez
Minister of State (Department for Science, Innovation and Technology)
This question was answered on 14th January 2021

The Government has been clear that we want to do all we can to support our steel industry. The UK-EU Trade and Cooperation Agreement does not affect the Government's ability to procure more UK-made steel. The Agreement incorporates our existing commitments on non-discrimination under the World Trade Organization’s Government Procurement Agreement that does not allow preferential treatment of UK steel producers in public procurement.

Our international obligations do still allow the UK to develop an independent procurement policy to save taxpayers money, drive wider social benefits and strengthen the resilience of domestic supply chains. The publication of indicative pipelines of government steel requirements alongside steel procurement guidance, ensures that UK steel producers have the best possible chances of competing for public sector projects.

We have recently published a Green Paper consultation on radical reform of the UK’s public procurement regulations. Our proposals aim to create a simpler regime that reduces costs for business and the public sector alike whilst complying with our international obligations. New rules will meet national needs, drive improved commercial outcomes, increase innovation and remove complex and unnecessary bureaucracy - all leading to improved value for money.

Alongside the Green Paper, our new social value approach, which came into effect for Government departments on 1 January, will help streamline and standardise the procurement process. It rightly aligns with government’s priorities on:

  • tackling regional inequality with new jobs and skills, including retraining the unemployed in clean growth sectors, and helping communities recover;

  • promoting economic growth and prosperity by supporting SMEs, VCSEs and start-ups to lead or be part of government supply chains; and

  • tackling climate change and supporting our net zero goals.

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