Chancellor Rachel Reeves has written to ministers urging them to "buy British" across four major sectors: steel, shipbuilding, energy, and artificial intelligence. The initiative aims to prevent excessive government business from going abroad under the Labour Party administration.
Government Contracts Focus on National Interest
In a letter co-signed by Cabinet Office minister Chris Ward, Reeves stated: "We should all want to see more businesses grow and prosper and create good, skilled jobs and apprenticeships here in Britain. Every secretary of state can and must lead this agenda within their departments if we are to deliver the change the public expect."
She expressed disappointment that too many government contracts still go overseas, adding: "We have instructed officials to take further steps to ensure your departments act in the wider national interest rather than solely focusing on narrow operational priorities."
Departments will be required to comply with new guidance expected later this summer, with each department held accountable for progress.
Examples of Controversial Contracts
Reports indicate Reeves' frustration over several significant contracts awarded abroad, including a £200 million deal for navy support vessels and a £9 million contract to refit the research ship David Attenborough at the Danish shipyard Orskov. Additionally, a £1.9 billion contract to upgrade the Faslane shipyard could also go to foreign firms.
Louise Gilmour, secretary of GMB Scotland, commented: "It is hard to imagine another country in the world being so willing to send such work abroad. It is beyond time the MoD started defending our workers and their communities."
A government spokesperson said: "For the first time, procurement of shipbuilding, along with steel, AI and energy infrastructure, will be recognised as critical for national security. We will also issue new guidance prioritising contracts for British business where necessary to protect our national security."
