New procurement guidance aims to strengthen national security

The procurement policy note, published on Friday (19 June), sets out the process for departments to use the national security exemption within the Procurement Act 2023 in critical sectors to support the country’s national security and economic resilience.

It also confirms four ‘sector leads’ – covering shipbuilding, steel, artificial intelligence and energy infrastructure – that will be tasked with guiding departments on the new procurement approach.

The sector leads will work to coordinate the procurement pipeline across the government, according to the guidance. It adds that in-scope organisations should work with the sector leads and support the shift to a "more interventionist, market-shaping approach in central government procurement as well as considering the national security exemption".

According to the document, the new approach is designed to respond to global uncertainty, adding that securing supply chains in the four sectors is critical to national defence.

Chancellor of the Exchequer Rachel Reeves said: "We have the right economic plan – using the power of public procurement to protect our national security and strengthen the UK’s economic resilience.

"British companies are delivering the innovation and resilience we need in a more uncertain world. This government will continue to back British businesses as we strengthen our national security and economic resilience."

Chief Secretary to the Prime Minister Darren Jones meanwhile said: "For too long, governments have prioritised short-term buying decisions that leave us vulnerable to the actions of others. This guidance will change that.

"From shipbuilding in Barrow to steel in Scunthorpe, we will make national security a priority and back British businesses and jobs."

Adam Carey