Government investment for industries that protect national security

The government has announced support for industries such as energy, steel and cyber, which help to protect national security.

A consultation has launched that will consider new rules to give the government greater power to support national security through government buying.

Through the proposed plans, ministers will be able to designate certain UK industries as nationally important to protecting UK national security.

The current rules require public sector buyers to consider bids from overseas suppliers that can undercut UK firms. Under the new plans, public sector buyers will be able to avoid normal buying rules to support national security, and award contracts to British industries. 

The plans aim to harness the £400 billion spent by central Government each year on everyday products and services to boost British business.

There will also be new guidance to require Government departments to consider UK-made steel in all future public projects.

Chancellor of the Duchy of Lancaster, Pat McFadden said: "Strong industry is essential to our national security. The new rules being considered  will give us the power to protect our national industries, ensuring more money goes to them as we buy goods and services in government.

"Our reforms will boost growth and ensure British industry is supported to deliver national security and our Plan for Change."

Industry Minister Sarah Jones said: "This is the latest win for our Steel Strategy, supporting jobs across the UK and building on the launch of our modern Industrial Strategy which will cut energy costs for steel firms.

"By strengthening our procurement to back British industry, we’ll not only bolster national security but drive growth by filling up companies’ order books across the UK. Supported by up to £2.5 billion, our upcoming Steel Strategy will set out how we’ll boost growth and investment in the sector even further."