Question to the Cabinet Office:

To ask the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office, what assessment he has made of the potential merits of reforming the Procurement Policy Note on steel to stipulate that the tendering process for contractors include requirements to provide supply chain plans, advertise steel supply opportunities and report on the origin of steel ultimately used.

The Government is committed to supporting the steel sector. Guidance published in December 2016 (PPN 11/16) has helped to create a level playing field by ensuring the full value offered by UK steel suppliers can be considered in major projects. Guidance covering supply chain plans and advertising opportunities is already included and the Government may consider additional obligations beyond the current guidance if they are in the public interest.

The steel guidance was designed only for contracts awarded under the Public Contracts Regulations, 2015; this does not include procurements which are based on Contracts for Difference arrangements that require a different process.

Departmental compliance with the steel guidance is published annually on Gov.uk along with a steel procurement pipeline to show future steel requirements for national infrastructure projects.

Departments are encouraged to sign up to aspects of the UK Steel Charter where relevant to their commercial activities and where consistent with the relevant procurement regulations, and the Government’s steel policy guidelines.

The review of UK steel safeguards is being led by the Trade Investigation Directorate, an independent arm of the Department for International Trade and it would be premature for the Government to comment on this before the recommendations have been published.

A joint Industry/BEIS Taskforce has been established to consider issues reported by UK steel producers in relation to their ability to secure public sector contracts. It is expected to report in Autumn 2021.