Source · Select Committees · Public Accounts Committee
Recommendation 21
21
The Department set out in its initial PPE strategy its desire to build on this...
Conclusion
The Department set out in its initial PPE strategy its desire to build on this UK manufacturing base, reiterating the role it should play in building a more resilient supply chain and also the wider benefits including job creation and making the UK a centre for innovative products.66 It is now apparent, however, that the Department holds a large excess of stock which it is concentrating on reducing down.67 In that context, the role of the UK suppliers forward seems uncertain as they are unlikely to receive orders for many years. The Department told us that those suppliers “have other products to make” and that the Department are “not in the market to buy at the moment”. Only seven UK suppliers are on SCCL’s future frameworks enabling them to bid for future PPE contracts.68 The Department said that it is worth with NHS Supply Chain to try and ensure that UK manufactured products are marketable to the health and social care sectors. Whilst it recognised that procurement rules will require it to still operate in the international market place it said that its plans to emphasis social value and environmental considerations going forward should place UK manufacturers in a good position to compete with international suppliers.69 61 Q106 62 Correspondence from Sir Chris Wormald, Permanent Secretary, Department of Health and Social Care, re Management of PPE Contracts, page 2, dated 19 May 2022 63 C&AG’s Report, The supply of personal protective equipment (PPE) during the COVID-19 pandemic, session 2019–2021, HC 961, 25 November 2020, para 2.14 64 C&AG’s Report, Investigation into the management of PPE contracts, session 2021–22, HC 1144, 30 March 2022, para 1.3 and Figure 4 65 Q56 66 Department of Health & Social Care, Personal Protective Equipment (PPE) Strategy, 28 September 2020, para 1.4 67 Q33 68 Q56 69 Correspondence from Sir Chris Wormald, Permanent Secretary, Department of Health and Social Care, re Management of PPE Contracts, page 4, dated 19 May 2022 16 Manageme
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.