Recommendation 43

HM Government · verbatim extract Rejected

The Procurement Act outlines the process for considering exclusions which contracting authorities must follow. The Act distinguishes between mandatory and discretionary exclusion grounds. Mandatory exclusion grounds cover the most serious, high risk scenarios. Discretionary exclusion grounds represent situations that may pose unacceptable risks. Where a discretionary exclusion ground applies, contracting authorities have an option to exclude suppliers on a case-by-case basis. It is the responsibility of contracting authorities to consider whether bidders meet the grounds for exclusion, and if appropriate to then exclude them from a competition. Discretion provides contracting authorities with the flexibility to consider the list of factors that are relevant based on the procurement in question. As the list of factors and potentially applicable exclusion grounds that are relevant will change, based on the procurement and the relevant supplier’s circumstances, it would not be appropriate to set a general baseline as to how frequently suppliers should be excluded on the basis of discretionary grounds. Contracting authorities must notify the Procurement Review Unit in the Cabinet Office, via the notification form on the PRU landing page on gov.uk, within 30 days of excluding a supplier, stating the exclusions ground. JCHR Recommendation 23 23. The Government should review the actions of the Procurement Review Unit to assess if its investigations are taking account of all relevant evidence and are effectively informing the exclusion regime within 12 months of the enactment of the Procurement Act (February 2026). (Paragraph 231) Government Response The Procurement Review Unit (PRU) will consider all relevant evidence and consideration as part of any debarment investigation. The PRU plans to conduct a review of its debarment investigation processes on a regular basis, capturing and implementing lessons learned from investigations. 13 Great British Energy and the Great British Energy Act 2025 JCHR Recommendation 24 24. Great British Energy must inform the Committee 12 months after this report is published to set out (i) how the objective on measures for ensuring that slavery and human trafficking are not taking place in Great British Energy’s business or supply chain has been implemented, and (ii) what their plans are for the next 12 months in relation to this object. This information should also be included in GBE’s Annual Report and Accounts. (Paragraph 238) Government Response The Government is taking steps to address reports of forced labour in clean energy supply chains. This includes strengthened procurement rules and support for industry-led transparency initiatives, such as the Solar Stewardship Initiative. Great British Energy will follow strict ethical standards in procurement and work with civil society to help ensure supply chains are free from exploitation. DESNZ issued the Statement of Strategic Priorities to Great British Energy in September 2025. The Statement of Strategic Priorities outlined that, in line with measures set out in the Great British Energy Act, Great British Energy should proactively work to deliver on the government’s commitments to tackle forced labour, modern slavery and human trafficking in its business and supply chains. It also outlined how the Secretary of State expects Great British Energy to become a sector leader in ethical supply chains. Great British Energy must develop, publish and deliver a Strategic Plan which reflects the Statement of Strategic Priorities. Great British Energy’s performance will be measured against the priorities set out in the Statement of Strategic Priorities. Over the next 12 months, Great British Energy will be required to comply with existing legislation, including the Modern Slavery Act 2015 and the Procurement Act 2023. Section 54 of the Modern Slavery Act 2015 places a requirement on businesses with a turnover of £36m or more to publish an annual modern slavery statement, setting out the steps they have taken to prevent modern slavery in their operations and supply chain. The Procurement Act 2023 will enable public sector contracting authorities, including Great British Energy, to reject bids and terminate contracts with suppliers and organisations which are known to use forced labour themselves or anywhere in their supply chain. In addition to its legal obligations, Great British Energy is taking forward other commitments to drive efforts in this area. This included a commitment to appoint a senior individual in the organisation to lead on ethical supply chains and modern slavery. Baroness Frances O’Grady has been appointed Senior Accountable Non-Executive Director for Ethical Supply Chains and will oversee the development of the organisation’s Supply Chain Risk Framework. Great British Energy are also recruiting an Ethical Supply Chains Lead with responsibility for embedding standards. In addition to embedding ethical standards at the boar