Shipbuilding, steel, AI and energy infrastructure will be recognised as critical for national security, the UK Government says.
Recent events have shown the fragility of global supply chains, and the importance of ensuring domestic capacity in key sectors which are vital for national security, it added.
It is introducing clear guidance on how departments can protect the UK’s economic security and build resilience in four critical sectors: steel, shipbuilding, AI and energy infrastructure.
With further requirements set for steel, departments will either use British steel or be required to provide a justification if the steel is to be sourced from overseas.
Cabinet Office Minister Chris Ward said:
“These reforms are about using the full weight of government spending to support British jobs, protect our national security and grow our economy.”
A new Public Interest Test will see departments now being asked to assess whether outsourced service contracts over £1 million could be delivered more effectively in-house. This test will cover over 95% of central government contracts by value.
Community impact will also now be placed at the heart of buying decisions, the UK Government said, with companies encouraged to integrate national and regional schemes into their bids.
To ensure accountability, departments will publish and annually report on a specific social value goal for all contracts valued over £5 million. This will cover over 90% of central government contracts by value.
A new suite of AI tools to streamline the commercial process have also been developed. Contract terms will be simplified and additional business information will be integrated into a central platform, so that small businesses do not have to submit the same information twice when bidding for different contracts.
