Recommendation 3

HM Government · verbatim extract Accepted

The Government has now brought forward its response to the consultation on public procurement. The response was published on 26th March 2026 following the consultation and subsequent stakeholder feedback between June-September 2025. With respect to ministerial engagement on manufacturing issues, transport manufacturing is included within the definitions of Advanced Manufacturing in the Sector Plan, while also considered an enabler for the Industrial Strategy more widely. Department for Business and Trade Ministers engage with key existing frontier industry forums, such as the Automotive and Aerospace Sector Councils. While these are primarily industry led groups, the Automotive Sector Council does have a Ministerial co-chair. The Department for Transport’s Permanent Secretary represents the Department’s interests at the Industrial Strategy’s Permanent Secretary Working Group, in addition to relevant Senior Civil Servants representing the Department at more junior fora. Outside of the Transport frontier sectors in Automotive and Aerospace, other Transport manufacturing subsectors - such as buses, rail, and maritime - benefit where frontier sector priorities overlap, including development of hydrogen propulsion, hybrid systems, batteries, and electric propulsion. Bus and road transport engine manufacturers have previously engaged with DBT key programmes such as the Advanced Propulsion Centre and the Hydrogen Propulsion Taskforce. Transport manufacturing will additionally benefit from horizontal measures in the Advanced Manufacturing sector Plan in key areas such as finance, robotics, skills, and regulation. Rail manufacturers currently engage on an official level with the DBT Rail team and the Department for Transport on their long term needs. Given Transport manufacturing interests are already represented at a senior official and ministerial level in the Industrial Strategy, the Government does not believe that a working group engaging Secretaries of State and focused purely on transport manufacturing represents an efficient use of ministerial time. The Committee has rightly identified procurement as an important component of the Government’s approach to supporting British manufacturers. The Procurement Act 2023 and the accompanying National Procurement Policy Statement—launched in February 2025—places significant importance on public procurement as a key lever in achieving the Government’s missions. Simplifying public procurement and aligning it with the Government’s missions, including the Industrial Strategy, will put UK firms in the best possible position to compete for and win public contracts. In addition, the National Procurement Policy Statement sets out the Government’s strategic priorities in relation to procurement, focusing on mission-led procurement to meet the full potential of public procurement to deliver value for money, economic growth and social value. Providing social value through procurement is the additional social, economic or environmental benefit that can be derived from the way a supplier works with its staff, suppliers, community or the environment when delivering a contract. Whilst the Cabinet Office is responsible for Government procurement, the Department for Transport recognises that procurement reform is essential to supporting British business and is one element of the Government’s overall approach to better supporting the UK’s manufacturing base. A departmental response was provided to the consultation on further reforms to public procurement, welcoming the recognition of procurement as a key strategic lever for contributing to a more resilient and stronger economy. Through the mechanisms available in the National Procurement Policy Statement and the Governments Social Value Model, the department continues to look for opportunities and consider ways to drive additional social, economic and environmental benefit from our contracts with third party suppliers.