26th Mar 2026 04:41
(Alliance News) - The UK government said on Thursday that domestic suppliers will be prioritised for government contracts relating to national security.
According to a statement released by the Cabinet Office, shipbuilding, steel, artificial intelligence and energy infrastructure will be regarded as critical for national security.
The government announced it will issue new guidance to prioritise UK businesses for contracts "where necessary to protect our national security".
"Recent events have shown the fragility of global supply chains, and the importance of ensuring domestic capacity in key sectors," the Cabinet Office statement said. "This guidance will ensure the government does everything in its power to facilitate strong and sustainable industry in the UK."
Going forward a new "public interest test" will require departments to assess whether outsourced service contracts with a value above GBP1 million could be delivered more efficiently in-house, which the government said will cover more than 95% of central government contracts by value.
Cabinet Office Minister Chris Ward said: "This government is backing British businesses and the working people who power them. These reforms are about using the full weight of government spending to support British jobs, protect our national security and grow our economy."
The announcement follows the launch of a new UK steel strategy earlier in March.
The steel strategy set a target to ensure 40% to 50% of all steel used in the UK is sourced domestically, and outlined plans to substantially reduce import quotas and hike the out-of-quota tariff rate to 50%.
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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