Source · Select Committees · Business and Trade Committee
Recommendation 10
10
Deferred
Public procurement policy must align with industrial strategy to incentivise investment and innovation.
Recommendation
Public procurement if used effectively is amongst the most important tools to drive the industrial strategy. However, for this to be the case, the Government needs to ensure that procurement policy joined at the hip with the industrial strategy and wider growth mission. The Government needs to procure in ways that incentivise private sector investment, encourage innovation and therefore provide very clear long-term demand signals. The Government also needs to ensure that the current barriers facing SMEs are addressed. (Conclusion, Paragraph 69)
Government Response Summary
The government agrees on the importance of public procurement for economic growth and states the Industrial Strategy details current reforms. Further details on their approach to procurement will be set out following a consultation launched in June 2025.
Government Response
Deferred
HM Government
Deferred
The Government agrees that public procurement is a powerful lever for driving economic growth in the UK. The Industrial Strategy set out how the Government will implement current reforms and also go further to ensure that public purchasing power is used strategically to support the Government’s priorities. Further detail on the Government’s approach to procurement will be set out following the consultation which was launched in June 2025, which proposed options to improve domestic competitiveness, strengthening the UK’s economic resilience and supporting British businesses.