United Kingdom · U.S. Treasury · The Guardian Technology
Rachel Reeves tells ministers to ‘buy British’ in four key industries
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Rachel Reeves has instructed cabinet colleagues to award government contracts in four critical industries directly to British companies, making clear her irritation that ministers have been sending too much government business abroad.
Key facts
- They include a £200m a contract for navy support vessels, which was awarded to the Dutch shipbuilder Damen, and a £9m deal to refit the research ship David Attenborough, which was signed
- It comes amid a wider battle over who should be chancellor if Keir Starmer is replaced during this parliament, with allies of both Reeves and the energy secretary, Ed Miliband, insisting their chosen
- Under the terms of the 2023 Procurement Act, ministers are able to ban companies for bidding for certain contracts if they are deemed to be a national security risk
- In the letter, which was co-signed by the Cabinet Office minister Chris Ward, the chancellor wrote: “The team should all want to see more businesses grow and prosper and create good, skilled jobs
Summary
In a letter seen by the Guardian, the chancellor tells every cabinet minister in charge of a spending department to “buy British” wherever possible, adding that she is disappointed they are not already doing so. Officials in the Treasury and Cabinet Office say they will now monitor billions of pounds’ worth of contracts in shipbuilding, steel-making, energy and artificial intelligence, and if necessary, override decisions taken by departmental ministers. Reeves’s letter was sent last week as she attempted to stamp her authority over her restive party, many members of which are expecting a change of prime minister within months.