Public Procurement: UK Businesses

13. What steps he is taking to prioritise UK businesses in Government procurement.

This Labour Government believe that it matters where things are made, and who makes them. Last week, I published new guidance to ensure that the full weight of our £400 billion procurement budget protects national security and backs British business. The guidance applies to four sectors initially—steel, shipbuilding, AI and energy infrastructure—and it will help secure our critical UK industries and boost growth across the country.

A&P Falmouth, now owned by Balaena, at Falmouth docks in my constituency, bid for a maintenance and repair contract for the Sir David Attenborough research vessel from UK Research and Innovation. Despite the company’s experience—the vessel was built at its sister yard, up in Teesside—and a strong bid, it narrowly missed out. The contract went to a Danish shipyard, under post-Brexit Conservative procurement rules. Despite not employing people in the UK, the Danish shipyard was marked up on social value criteria. A&P Falmouth would have employed local apprentices to do the work on the ship. Will the Minister confirm that under the procurement rules that we are introducing, British shipyards will be prioritised for British work?

My hon. Friend is right to raise this issue. She has raised it with me previously, and she is a fantastic champion for her constituents. As she knows, I am working with the National Shipbuilding Office to bring forward the new rules. Shipbuilding is one of the areas that we are prioritising. Unfortunately, this procurement took place before the guidance came in, and it shows why the guidance is so necessary. It allows us to protect British national security and support shipyards, such as the one in her constituency. I reassure her constituents that the steps that the Government have taken will mean that more contracts, business and jobs come to constituencies like hers.