How a UK-First Public Procurement Policy Could Transform Local Manufacturing

The Government has just released its latest National Procurement Policy Statement, with promises to give SMEs and social enterprises a better chance at winning public contracts. Sounds great doesn’t it? But having been at the coal face of trying to get UK manufacturers involved in public procurement during the pandemic, I’m skeptical about whether this will actually benefit British manufacturing.

We’ve Been Here Before – The PPE Procurement Disaster

Back in 2020 when COVID hit, I spent countless hours trying to connect UK textile manufacturers with government procurement teams who were desperately seeking PPE. What I discovered was shocking – procurement officials who had zero understanding of UK manufacturing capabilities and were fixated solely on getting the cheapest possible price.
[Read more about the PPE sourcing debacle here]

“I even wrote an email to Boris Johnson and Matt Hancock entitled ‘A Local Manufacturing Solution to the PPE Shortage’ – I never got a reply from either of them.”

While our skilled UK manufacturers stood ready to help, contracts worth billions went to overseas suppliers via dodgy intermediaries (including one particularly notorious Baroness), resulting in delayed deliveries, substandard products, and wasted taxpayer money.

Why the National Procurement Policy Risks Missing the Point

The policy only requires central government departments to set targets for “direct spend with SMEs” – it doesn’t specify anything about the wider supply chain or where the actual manufacturing takes place. In fact, there’s no mention of manufacturing requirements at all.

So a large overseas manufacturer could easily supply products through a small UK-based trading company, and this would count towards the government’s SME spending targets. The policy focuses solely on the size of the company being directly contracted, not on where or how the products are made.

This is a fundamental flaw that could actually make things worse for UK manufacturers. Government departments might hit their SME spending targets while still sending all the real manufacturing work overseas. We saw exactly this pattern with PPE procurement – small UK companies winning huge contracts only to source everything from overseas factories.

The Americans tackled this problem decades ago with the Berry Amendment, which requires the US Department of Defense to buy American-made textiles and clothing – not just from American companies. This clear focus on domestic manufacturing has created a robust local supply chain that can respond quickly in times of crisis.

The True Cost of Ignoring UK Manufacturing

When government buyers fixate on the lowest possible price, they’re missing the bigger economic picture.

If we spent more money on locally-made products in public procurement, we would create thousands of skilled manufacturing jobs in the UK. These workers would pay income tax, spend money in their local communities, and help rebuild our manufacturing skills base. Instead, by sending contracts overseas, we’re effectively investing in other countries’ economies while watching our own manufacturing base decline.

Beyond the lost economic opportunities, there are the obvious supply chain vulnerabilities that were exposed during the PPE crisis.

Then there are hidden costs in quality control and compliance, plus the environmental impact of shipping goods halfway around the world. But the real opportunity here is in rebuilding our manufacturing capabilities – investing in state-of-the-art manufacturing, training new skilled workers, and regenerating local communities through well-paid manufacturing jobs.

What Public Procurement Needs to Do Next

For meaningful change to happen, public procurement needs a complete overhaul in how it approaches buying decisions. This means mandatory consideration of total cost of ownership rather than just purchase price, genuine requirements for UK-made goods (not just UK-registered suppliers), and serious investment in rebuilding domestic manufacturing capabilities.

Procurement teams need proper training in understanding UK manufacturing capabilities, and manufacturers need the security of long-term contracts to give them confidence to invest in their facilities and workforce.

The Risk of Doing Nothing

Without meaningful reform, we risk watching our remaining manufacturing capabilities disappear entirely, leaving us even more reliant on volatile global supply chains. We’ve already seen how dangerous this can be in a crisis – do we really want to be in an even worse position next time?

Making Your Voice Heard

As a board member of Fashion Roundtable, the secretariat to the All-Party Parliamentary Group for Ethics and Sustainability in Fashion, I’ve seen firsthand how powerful our collective voice can be in influencing policy. Fashion Roundtable brings together industry experts, policymakers and stakeholders to shape the future of UK fashion and textiles, and procurement reform is high on the agenda. The Fashion Rountable’s industry sector vision recommends that government give greater support for on-shoring and a strengthening of public procurement.

If you’re a UK manufacturer, now is the time to make your voice heard. Join Fashion Roundtable and Make it British in calling for local public procurement that genuinely supports UK manufacturing.

Sign up to the Make it British newsletter and Fashion Roundtable Substack to hear when the next meetings in Government take place and have your say in shaping the future of public procurement.

The new procurement policy could be a turning point – but only if we ensure it drives genuine support for UK manufacturing rather than just creating a new layer of importing middlemen.

We’ve seen what happens when we rely too heavily on overseas supply chains. Let’s not waste this opportunity to rebuild British manufacturing capability through smart procurement policy.

Building a Sustainable Future for UK Manufacturing

The new public procurement policy presents a real opportunity – but only if it’s implemented in a way that genuinely supports UK manufacturing skills and jobs, rather than just creating another layer of importing middlemen.

When manufacturers have the security of government contracts they can invest in training, take on apprentices and upskill their workforce. They can upgrade machinery, improve facilities and plan for growth. This creates a virtuous circle – more skilled workers, better jobs, stronger local communities and a more resilient manufacturing base.

We’ve already lost too many skilled workers and too much manufacturing capability by chasing the lowest possible price overseas. Smart procurement policy that prioritises UK manufacturing could help reverse this decline, creating thousands of good manufacturing jobs and ensuring vital skills are passed on to the next generation.

The question is – are we ready to seize this opportunity and rebuild British manufacturing for the long term? Join us in making sure that happens.