Reeves Orders Billions in UK Contracts for 4 Sectors as Treasury Threatens Overrides
Updated
Updated · The Guardian · May 25
Reeves Orders Billions in UK Contracts for 4 Sectors as Treasury Threatens Overrides
3 articles · Updated · The Guardian · May 25
Rachel Reeves told cabinet ministers to award contracts directly to British firms in shipbuilding, steel, energy and AI, with the Treasury and Cabinet Office set to monitor billions of pounds of spending.
A letter sent last week said departments were still sending too much work abroad and warned new summer guidance will require accounting officers to weigh contractors’ nationality alongside cost.
Officials could call in and override departmental decisions, reflecting Reeves’ anger over foreign-linked awards including a £200 million navy support-vessel deal, a £9 million David Attenborough refit and a £1.9 billion Faslane upgrade still open to overseas bidders.
Unions have backed a tougher line on domestic sourcing, while other officials argue restricting competition would raise costs for taxpayers and that some disputed deals followed proper tender processes.
The push also ties procurement to national security under the 2023 Procurement Act, as ministers worry overseas suppliers—especially in energy—could gain leverage over critical infrastructure.
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