UK Government Prioritizes British Suppliers for Vital Sectors Under New National Security Procurement Rules
March 26, 2026
The UK government will prioritize British suppliers for public contracts in four sectors deemed vital to national security: steel, shipbuilding, AI, and energy infrastructure.
The policy operates within GPA/WTO rules, using national security exemptions for implementation, following consultations.
Larger departments spending over £100 million annually must publish an insourcing strategy detailing plans to bring services back in-house where beneficial.
When involving external contractors, procurement decisions should emphasize community impact, local jobs, and apprenticeships, integrating national and regional schemes into bids.
An AI toolkit has been developed to streamline procurement and bid management, making bidding simpler, faster, and fairer.
The measures align with the National Security Strategy and aim to reduce reliance on global supply chains highlighted by regional shocks, such as the Gulf conflict.
Cabinet Office statements emphasize reversing 'outsourcing by default' and boosting British jobs, security, and economy.
Departments must use British steel or justify overseas sourcing as part of new procurement rules.
A Public Interest Test will assess whether outsourcing contracts over £1 million could be delivered more effectively in-house, covering over 95% of central government contracts by value.
Related measures under development include policies specifically tied to national security and shipbuilding.
Summary based on 1 source
Get a daily email with more World News stories
Source

The Guardian • Mar 26, 2026
British suppliers to be prioritised for contracts in sectors vital to national security