Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Prior to the COVID-19 pandemic there were not many businesses in the UK that specialised...
Conclusion
Prior to the COVID-19 pandemic there were not many businesses in the UK that specialised in producing PPE with most of it coming from overseas. The pandemic saw steep rises in global prices for PPE as demand for it surged throughout the world. As part of its initial pandemic response, the Department decided to try and encourage UK manufacturers to start producing PPE in order to increase the short-term supply and to help improve the UK’s long term resilience and ability to respond in the event of future pandemics.63 This “UK Make” strategy resulted in the Department signing 37 contracts with UK manufacturers worth £1.1 billion for 3.9 billion PPE items.64 The Department was complementary about the role of these UK suppliers saying that those 37 contracts were very successful and that some of these suppliers were “really creative at an early stage”.65
Government Response
Not Addressed
HM Government
Not Addressed
6: PAC conclusion: The future of the UK-based supply chain for PPE is unclear. 6: PAC recommendation: The Department should explain in its Treasury Minute response what the role of UK based suppliers of PPE is expected to be going forward. This should include what role UK-based suppliers can expect to play in ongoing procurement activity and what the expectation is for capacity to be increased in the event of future pandemics. 6.1 The government agrees with the Committee’s recommendation Recommendation implemented 6.2 Over the course of the pandemic, the department has established a resilient UK-based supply chain for all items of COVID-19 critical PPE, excluding gloves. Contracts have been signed with around 30 UK-based companies for 3.9 billion units of PPE, all of which has now been delivered. 6.3 Current analysis of stock levels shows that there are sufficient volumes of all categories of PPE to maintain the central provision until the end of March 2023. If demand were to change, any new buying requirement would be undertaken through NHS Supply Chain framework contracts. The department is working with NHS Supply Chain to help offer UK manufactured products to the health and care sectors where possible. Whilst procurement will continue on the open market in compliance with the UK’s international commitments, future exercises will include a focus on social value and environmental considerations, against which UK manufacturers should be well placed to compete. 6.4 A number of the companies that the department established contracts with continue to actively manufacture PPE. The department is continuing to work with NHS Supply Chain to help ensure UK manufactured products are marketable to the health and care sectors.