Source · Select Committees · Business and Trade Committee
Recommendation 28
28
To ensure full transparency, the Procurement Policy Note (PPN) on steel procurement in major projects...
Recommendation
To ensure full transparency, the Procurement Policy Note (PPN) on steel procurement in major projects should be updated to include a requirement for contracting authorities to provide supply chain plans and publicise supply opportunities for UK steel producers. The Government should also publish updated guidance on how social and environmental considerations should be made in relation to steel purchases to ensure these are taken into account by contracting authorities. (Paragraph 142) 66 Liberty Steel and the Future of the UK Steel Industry
Government Response
Not Addressed
HM Government
Not Addressed
57. Since leaving the EU the Government has initiated a review of our public procurement rules with the aim of speeding up and simplifying our processes, placing value for money at their heart, and unleashing opportunities for innovation. In September 2020, we launched our Social Value Model which requires central government departments to expressly evaluate the environmental, social and economic benefits of qualifying procurements. 58. We note the points made by the Committee on steel procurement and these are under active consideration by the Steel Procurement Taskforce (launched in March 2021). This Taskforce brings together Government Departments with the steel sector to explore the difficulties the UK steel sector have reported in competing for and securing major public contracts. The Taskforce is looking at topics such as supply chain transparency, updating the Procurement Policy Note on steel procurement in major projects, and improving the robustness of public procurement data and is expected to report on its findings early in 2022. 59. In the meantime, we are working to make improvements to the data reported in the annual steel pipeline, which details upcoming steel requirements for Government infrastructure projects to enable steel manufacturers to better plan and bid for contracts. 60. We are also publishing annual self-declared information from departments and their arm’s-length bodies on how much steel they have procured for their public projects over the last financial year (including what proportion is UK produced) and how they have applied the steel procurement guidance set out in the Government’s current Procurement Policy Note: Procuring Steel in Major Projects (PPN 11/16): www.gov. uk/government/publications/procurement-policy-note-1116-procuring-steel-in-major- projects-revised-guidance. 61. The data collection process involves a large data gathering exercise through multiple layers of contractors and subcontractors. We are committed to working with departments and their arm’s-length bodies to continue to improve the robustness of data and simplify the data collection process in the coming years. 62. Whilst the National Highways provided a ‘nil return’ last year while they reviewed their steel data collection process, they have committed to providing their procurement data for 2022 publication.