Source · Select Committees · Business and Trade Committee
Recommendation 13
13
Acknowledged
Increase long-term public contract opportunities; update procurement strategy with comply-or-explain for UK products.
Recommendation
To ensure that there is sufficient long term demand signalling, we recommend that Government Departments increase the proportion of public contract opportunities in their pipeline that are five to ten years out. . We also recommend that the Government update its public procurement strategy to include a comply-or-explain process for declaring why products are not procured from the UK. (Recommendation, Paragraph 72) 72 Government support for crowding-in investment
Government Response Summary
The government acknowledges the importance of long-term signalling and mentions the Procurement Act (2023) and an existing MOD budget target for novel technologies. It is consulting on options related to supporting British industry in procurement, but does not commit to increasing the proportion of 5-10 year public contracts across all departments or implementing a 'comply-or-explain' process.
Government Response
Acknowledged
HM Government
Acknowledged
8.1. The Government also recognises that long-term signalling is critical, and the provision of clear, long-term signals to suppliers, for example by targeting at least 10% of the MOD’s equipment procurement budget for novel technologies will seek to accelerate innovation and create investment opportunities. The introduction of the Procurement Act (2023) seeks to create a simpler, more commercial and transparent regime that will reinforce commitment to long-term signalling. 8.2. The current consultation on options to go further to strategically support our Industrial Strategy priorities includes growing British industry, jobs and skills. The Government recognises that public procurement can help to improve domestic competitiveness, make the economy stronger and more resilient, and help provide a foundation of security for British businesses. The consultation proposes options on how we can open up contracts to more small businesses and ensure public bodies give more weight to firms that show they will boost British jobs.