The UK government has introduced new procurement guidance prioritizing the use of domestically produced steel in public sector contracts, as part of efforts to strengthen national security and supply chain resilience.
Under the new rules, steel has been designated as a critical sector, with government departments required to use British steel for projects or provide justification when sourcing from overseas. The move follows the recently announced UK Steel Strategy and aims to support domestic production capacity.
The policy comes amid growing concerns over the fragility of global supply chains, with the government seeking to enhance resilience by boosting local industry participation in public procurement.
In addition, departments will be required to assess whether contracts exceeding GBP 1 mln can be delivered more efficiently in-house, as part of broader reforms to improve value for money and reduce reliance on outsourcing.
The government will also place greater emphasis on local economic impact, encouraging companies to create jobs, develop skills and support regional supply chains as part of their contract bids.
The measures are expected to support domestic steelmakers and reinforce demand for locally produced steel in infrastructure and public sector projects.
