The Government wants to turbo boost UK growth. My ‘Buy British Bill’ aims to do just that.
The UK spends £300 billion on public procurement. But all too often, this money goes overseas to foreign suppliers or multinationals, rather than supporting UK businesses. Why? Britain has dynamic, world-leading companies which need our investment.
I look around my constituency, Rotherham, with pride. We have excellent businesses, big and small, that rightly deserve a slice of the £300 billion pie.
Rotherham is probably best known for steel production. Liberty Steel employs hundreds in the constituency and supports the employment of many more workers throughout the supply chain. Liberty makes a unique, specialty green steel – highly valued around the world, especially in the aerospace industry. But despite renowned expertise and high-quality products, UK steel makers are losing out on contracts.
Our steel industry needs Government support: I am talking public contracts, not handouts. The British Constructional Steelwork Association found that only 58% of steel contracts were awarded to British suppliers, during the HS2 project. This is despite the UK steel industry having the capacity to have carried out 100% of the work.
Last year, our steel industry directly contributed £2.9 billion to the UK economy and an added £3.8 billion through supply chains – imagine the contributions it could make if it was responsible for 100% of production contracts.
My Bill refocuses our procurement system, so that it awards more public contracts to British businesses, turbo-charging growth.
It does this by making slight amendments to the Public Services (Social Value) Act 2012 and the Procurement Act 2023, increasing transparency and raising the importance of the origin of goods and services.
Multiple sectors would benefit from this kind of visibility. Take food, for example. The UK public sector currently spends around £2.4 billion a year buying food for organisations such as schools, hospitals, and the armed forces. But there is no accurate measure of how much food the public sector procures from British suppliers.
My Bill would change this, requiring contracting authorities to publish what proportion of food they procure actually originates from the UK – ultimately encouraging the award of more public sector food contracts to British farmers.
It is surely common sense to support our local food producers by ensuring that we buy, sell, make, and grow more of our great British food. This would entrench Britain’s reputation as a beacon for quality food and high standards. The animal welfare standards in the UK lead the world, and an additional upside of buying British is that cruelty free procurement would become the norm.
Another area worthy of renewed focus is Britain’s excellent small and medium-sized businesses (SMEs). SMEs are the beating heart of our economy. Yet they are at a disadvantage within the public procurement system, with estimates suggesting they are missing out on £30 billion worth of public contracts annually.
This is hugely disappointing. SMEs account for 99% of businesses in the UK and 60% of employment. It is essential we improve transparency around contracts awarded to SMEs. If we improve the odds for British SMEs, then we reward our economy twice, by keeping expenditure in-house and strengthening that beating heart.
My conversations with businesses and industry groups have made it clear that the changes I have proposed are welcome. I’m proud that my Bill has received support from such a diverse range of organisations, from farmers to trade unions, from industry leaders to animal welfare groups.
It’s welcome news that the Labour Government is working to reform our procurement system to ensure that it delivers economic growth. I hope they seize the opportunity right in front of them. British goods and services must be prioritised, and that is what my Bill will do.
My Buy British Bill will boost the economy and protect jobs
