Rachel Reeves has urged Cabinet ministers to ensure major Government contracts are awarded to British firms, citing concerns about industrial resilience and economic impacts from escalating Middle East tensions. She wrote to departments to prioritize British companies for contracts tied to shipbuilding, steel, energy, and artificial intelligence. Reeves said every secretary of state must lead the agenda within their departments and criticized ongoing contract awards that do not reflect this priority. Officials have been instructed to take further steps so departments act in the wider national interest rather than narrow operational priorities. The move responds to unease about infrastructure and defence projects going to overseas firms, including a Faslane upgrades contract and North Sea offshore wind turbine supply plans involving a Chinese manufacturer. Barclays data indicates many UK firms face negative effects from the Iran conflict, including energy cost and supply chain pressures.
"Rachel Reeves has launched a drive to prevent major Government contracts from being handed to foreign companies amid growing concerns over Britain's industrial resilience and the economic fallout from escalating tensions in the Middle East."
"The Chancellor has written to Cabinet ministers urging departments to prioritise British firms when awarding contracts linked to four strategically important sectors: shipbuilding, steel, energy and artificial intelligence."
"In the letter, Ms Reeves told ministers that "every secretary of state can and must lead this agenda within their departments if we are to deliver the change the public expect". Reeves added: "Therefore, it is disappointing that we are still seeing too many Government contract awards where this is not happening.""
"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. The intervention comes amid mounting unease within the Government over the prospect of key infrastructure and defence-related projects being awarded to overseas firms."
#government-procurement #industrial-resilience #national-interest #uk-manufacturing #energy-and-infrastructure
Read at London Business News | Londonlovesbusiness.com
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