The UK government has introduced new procurement rules that prioritize domestic steel in public contracts, aiming to enhance national security and supply chain resilience.
Under the new policy, steel, shipbuilding, artificial intelligence and energy infrastructure have been designated as critical sectors. Public bodies are now required to use British steel or justify sourcing from overseas, ensuring stronger support for local industry.
A key addition is the Public Interest Test for contracts above £1 million, which will apply to over 95% of central government contracts by value. This marks a major shift toward prioritizing domestic capabilities.
Officials emphasized that recent global disruptions have exposed vulnerabilities in international supply chains, reinforcing the need for stronger domestic production capacity.
Industry groups have welcomed the move, highlighting that public procurement is a powerful tool to secure long-term industrial strength and job creation in the UK steel sector.
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