Tag: Treasury

The press release issued by HM Treasury on 28 September 2026.

The Chancellor has announced a package to help people into work, education and training, while building the skilled workforce Britain needs for the future.

The package will see the National Wealth Fund used to create and support 130,000 jobs across the UK, expanding local apprenticeship services to connect more young people with employers, and restoring the Union Learning Fund with £15 million a year to help people build new skills. 

National Wealth Fund 

The Chancellor has announced that Government will use the National Wealth Fund’s current capitalisation to create and support a further 130,000 jobs across the UK by 2030. The National Wealth Fund will support good jobs across sectors including AI and technology, defence and clean energy.  

Rolls Royce funding expansion 

In a boost for the UK’s advanced manufacturing sector, the Chancellor announced today that Rolls Royce will bring a landmark £300 million investment into its manufacturing and engineering facilities across the UK. 

The significant investment reinforces the company’s commitment to the UK’s advanced manufacturing ecosystem, with funding going to factories across the UK. In Derby the company is investing more than £140 million on new engineering and manufacturing services facilities to enable future growth, supporting more than 10,000 employees.

In Bristol, the home of UK military power and propulsion, Rolls-Royce is investing over £90 million on a major facility upgrade programme –  supporting the more than 3,500 employees based at the site, including highly skilled engineers.

An investment of £43 million at Inchinnan, Glasgow, is introducing machinery that will enable new engine components to be manufactured while in Rotherham, Rolls-Royce is investing £19 million at its Advanced Blade Casting Facility, doubling its output of advanced turbine blades – a critical component in jet engines – by 2030.

Expanding local apprenticeships services  

Local leaders know their areas best and are ideally placed to match young people with small employers to create the apprenticeships their communities need. 

Budget 2025 announced government funding to pilot apprenticeship brokerage in some Mayoral Strategic Authorities. Today the Chancellor’s announcement goes further, expanding funding to all 14 existing Mayoral Strategic Authorities with directly elected mayors, so they can help provide local apprenticeship services across England from Spring 2027. 

As part of the government’s commitment to expand apprenticeship opportunities for young people, the £100 million of additional funding across 2 years doubles the number of areas matching young people with local businesses. Led by mayors, and driven by the skills and needs of local labour markets, this will deliver thousands more youth apprenticeships, supporting more young people to kickstart their careers.

This builds on government support for the rest of the country including full funding of training and assessment costs for all eligible apprentices aged 16 to 24 and the £3,000 Youth Jobs Grant, while the government’s ambition is to put strategic authorities in place everywhere by the end of 2028.

Union Learning Fund 

The Chancellor also confirmed £15 million a year of additional funding to restore the Union Learning Fund in England, helping working people gain new skills, progress at work and adapt as technology, including AI, changes the workplace. 

The fund previously generated 180,000 learning opportunities every year and will draw on trade unions’ trusted workplace relationships to reach those people and help them access training through their employers and existing skills programmes. 

This fund will help British workers harness AI rather than be outrun by it. 

Employees will not need to be union members to benefit, with potential support ranging from essential English, maths and digital skills, to training for jobs in growing industries such as advanced manufacturing. 

The Budget will set out details how apprenticeship brokerage expansion and Union Learning Fund are fully funded by savings found by the Department for Work & Pensions.

The press release issued by HM Treasury on 28 September 2026.

Overseas buyers will be offered a new UK Export Finance loan guarantee to incentivise buying goods and services from British companies.

• The UK Export Finance pilot initiative, worth up to £5 billion, will help British exports gain a foothold to high-growth economies like Brazil, Morocco and Mexico, creating jobs and stimulating growth back home.
• This follows the Chancellor identifying ‘Backing Britain’ through procurement and jobs as one of his main priorities, to drive growth in every postcode and bring hope back to communities.

British businesses will have more opportunities to ramp up their exports overseas and bring jobs and growth to communities back home under new plans announced by the Chancellor.

A new UK Export Finance (UKEF) pilot product – Flexible Finance – will see select buyers who operate in fast growing economies like Brazil, Morocco and Mexico where British exports could be greater, access loans on more flexible terms to incentivise buying British.

Unlike UKEF’s existing guarantees, this product will give borrowers greater flexibility in how they use funding, while encouraging finance-seeking buyers to work with the UK by accessing UKEF support and choosing British suppliers. Alongside this, UKEF will engage with UK suppliers through matchmaking and procurement support.

UKEF guarantees – up to £5 billion-worth in total under this pilot – will cover up to 80% of a commercial loan for select overseas buyers. This widens access to finance for the foreign borrower and establishes a relationship with UKEF. UKEF will partner with the borrower to grow their imports of goods or services from British companies.

This follows the Chancellor identifying ‘Backing Britain’ through procurement and jobs as one of his main priorities, to drive growth in every postcode and bring hope back to communities.

Chancellor of the Exchequer, John Healey MP, said:

We’re backing British businesses to strike more deals overseas. Especially in countries which are growing fast but we don’t have a big British footprint.

This is a new approach and part of the argument I will make in my speech in Liverpool on Monday that we are backing British industry and British innovation; helping create more markets abroad and more> jobs at home.

Secretary of State for Business, Innovation, Science and Trade, Jonathan Reynolds said:

We believe in Britain’s ability to sell to the world, and that includes taking strides into new markets with all the opportunities they bring for the UK.

Through Flexible Finance we are not just sending out a message to other nations that they should buy British, we are laying the foundation for good growth and jobs in the UK, as British companies bring home the benefits of a thriving export market.

This is the latest of various additions made to UKEF’s offering as it responds to the Industrial Strategy and follows the launch of a new defence export facility in June, increasing UKEF’s capacity for supporting defence exports by £50 billion.

The press release issued by HM Treasury on 28 September 2026.

Two major maritime projects to be part of “new age of industrialisation” for Britain.

• Government backs British shipyards with multi-billion pound investment in three major maritime projects to strengthen national security, support skilled jobs and drive growth in every part of the UK.
• Chancellor confirms three new floating docks for the Royal Navy’s submarine service at HM Naval Base Clyde will be built in Britain supporting Britain’s defence industrial base and securing key sovereign capabilities.
• New marine research vessel to be built in a British shipyard, backing coastal communities, sustainable fishing and long-term economic growth.

British shipyards will be at the heart of two major maritime projects worth billions of pounds, helping to create high-skilled jobs, drive growth and strengthen the UK’s long-term industrial and national security capabilities.

Chancellor John Healey will pledge a “new age of industrialisation” for Britain today as he confirms the multi-billion pound projects will be built by British workers, supporting jobs and a pipeline of small British businesses. 

Healey will confirm that the Royal Navy’s submarine service at HM Naval Base Clyde will receive three new floating docks – known as Programme Euston – through a UK-only competition, in light of their importance to national security and sovereign British industry.

The new facilities will provide crucial maintenance for the UK’s current and future fleet of nuclear submarines, allowing essential inspections, upgrades and repairs to be carried out.

In addition to this, the Chancellor has also committed to funding for a new marine research vessel to help protect our seas. Set to be operational in the early 2030s, it will continue the delivery of core research on our seas and oceans, replacing the current vessel which is nearing the end of its life.

The evidence it collects will help ensure the security of our seas, support sustainable fishing and give coastal communities confidence that fish stocks are being managed for the future.

Both projects will be delivered by UK companies, as part of a greater focus on how government spends taxpayers’ money to boost national security whilst also supporting British jobs and growth in local communities.

Chancellor of the Exchequer John Healey said:

“Britain has a proud shipbuilding heritage, and every pound of this strategic investment in a critical sector is backing British jobs on the Clyde and businesses across the UK, supporting growth in every postcode.

“By backing British shipyards, we are not only boosting national security but also securing resilience in the industries that will drive growth today while building the capabilities the country needs for the future.”

Defence Secretary, Wes Streeting said: 

“Defence spending should make Britain stronger in every sense. That means backing British by buying British wherever our industry can deliver.

“HM Naval Base Clyde is at the heart of our submarine service. Programme Euston will modernise it for decades to come, while backing British shipyards, workers and engineering.

“That is defence driving the reindustrialisation of Britain and strengthening our sovereign capability.”

The press release issued by HM Treasury on 7 August 2026.

Intention to invest £100 million through British Business Bank’s Investor Pathways Capital Initiative to boost growth in every postcode.

• As many as 10 new venture capital funds to be launched across the UK expanding access to venture capital beyond London
• Economic Secretary to the Treasury visited Sheffield and Leeds to meet businesses, lenders and investors supporting regional growth

Investors in early-stage companies across the UK can access a multi-million-pound investment boost as the Chancellor backs growth in every postcode through the next £100m phase of the British Business Bank’s Investor Pathways Capital Initiative.

Supporting talented, first-time venture capital investment fund managers from a wide range of backgrounds, the initiative, which will invest £400m in total, helps businesses scale up as the fund managers provide the catalytic early capital that innovative, early-stage businesses need to scale up drive local growth and create more good British jobs.

Business large and small have felt the squeeze as the cost of business has risen. The Chancellor is backing investment outside of London into businesses to help tackle this, bolstering efforts to make Britain better off.

Chancellor of the Exchequer John Healey MP said:

One of my priorities as Chancellor is wealth creation. That means building an economy that helps people live well. I know there is a cost of business and it will not go unnoticed.

This must involve stepping up our support for the businesses who invest in people, and this £100m boost will help provide the fuel to drive new life into local economies up and down the country.

In June, the British Business Bank committed up to £90m to 10 new microfunds as part of the first Investor Pathways Capital cohort. Applications for the next cohort, which is part of this £100m deployment, will open in Autumn 2026.

Economic Secretary to the Treasury Lucy Rigby said: 

We want growth in every postcode and businesses are integral to that as the absolute backbone of our economy.

Unlocking investment and capital for British businesses, backing firms with practical support and ensuring businesses wherever they are can get the finance they need to grow, innovate and create jobs.

Separately, the Economic Secretary to the Treasury yesterday met with businesses, lenders and investors from across Yorkshire in Sheffield and Leeds. They discussed how government will support the British Business Bank and industry to work together to ensure the most ambitious of British firms can access the finance they need to invest, create jobs and drive growth in every postcode.

The visits came as the Government continues to deliver on commitments made at Mansion House to strengthen the UK’s business finance ecosystem. This approach is centred on ensuring growth reaches every part of the country – ensuring firms have the finance and support they need a at every stage of their growth journey – from start-up through to scale-up.

Recent reforms to the Growth Guarantee Scheme will increase lending capacity by a further £2 billion per year by 2028/29, helping an additional 12,000 smaller businesses access finance each year while extending loan terms and broadening eligibility. These changes are designed to ensure more businesses can secure the funding they need to invest, expand and create jobs.

The British Business Bank is playing a central role in helping deliver this ambition, supporting businesses throughout their growth journey through debt finance, venture capital and targeted investment programmes. Recent activity has included investments supporting innovative technology businesses, new venture capital funds and underserved communities across the UK’s Nations and regions.

The press release issued by HM Treasury on 6 July 2026.

Joint statement from the United Kingdom, the Netherlands, Finland and Poland.

Ahead of the Ankara NATO Summit the United Kingdom, the Netherlands, Finland, and Poland reiterate our shared commitment to strengthen defence financing and improve the cost-efficiency of defence spending to transform our collective defence capabilities. In light of the rapidly evolving international security environment and the consequences of Russia’s aggression against Ukraine, we shall act together to be prepared to address future threats. We remain committed to supporting Ukraine in defending its sovereignty and resisting Russian aggression.

We are making significant progress to develop the new Multilateral Defence Mechanism together with partners. The MDM is an innovative new financing model intended to accelerate defence investment, stimulate joint procurement, and aggregate demand in critical defence capabilities, with the ultimate objective of meeting the military needs of like-minded allies. We aim to move quickly to formal Treaty negotiations, respecting individual members’ ratification processes, while maintaining the shared ambition of setting up the MDM by 2027. We have benefitted from the support of a wider group of allies in developing the technical details of the model.

To further progress the MDM, the UK, the Netherlands, Finland and Poland will therefore:

• work with core partners to expand the MDM into a broader coalition of participants;
• build on technical development and move to the next phase of mechanism design and development with subscribed partners during the Autumn
• ensure that emerging approaches to international defence financing are aligned and complementary, including by working with other NATO allies on aligning our efforts for increased capability and interoperability

Chancellor of the Exchequer Rachel Reeves said:

Defence procurement in Europe is too fragmented, expensive and slow. That’s why I’ve been working to establish the Multilateral Defence Mechanism will enhance collaboration, to improve procurement and strengthen our collective deterrence.

In a world which is changing around us, we are strongest when we work in lockstep with our allies. I am glad to welcome Poland to the Multilateral Defence Mechanism to bolster our defences and keep us and our allies safe.

The press release issued by HM Treasury on 1 July 2026.

Communities that have been under-invested in and overlooked for decades are now getting a fair hearing as the Chancellor pushes forward with her overhaul of how investment decisions are made by government.

Rachel Reeves has written to mayors today [30 June] to update on new action being taken one year on from the review of the Green Book to ensure projects in all parts of the country get the backing they deserve and strengthen confidence in how government invests where they live.

The Green Book – the government’s guidance on value for money of investments – was updated in February to ensure decisions are no longer based solely on single metrics such as benefit-cost ratios but take into account the full range of economic and social impacts that matter for growth. That could include how favourable the business environment is or where there are higher levels of innovation.

Findings of an independent review into the discount rate have also been published, ensuring the government is taking a fair view of long-term investment decisions.  Business case guidance has also been streamlined and cut by more than half, cutting through government ‘sludge’ and reducing unnecessary red tape. 

The government is working in lockstep with regional leaders in Plymouth, Birmingham, Liverpool and Port Talbot to progress place-based business cases – putting local priorities and local expertise at the centre of appraisal. 

In Plymouth work on the place-based business case is ongoing to maximise the impact of the government’s defence investments, in Birmingham, on coordinated investments in health, housing and skills, in Liverpool, on unlocking investment in infrastructure to drive growth and ramp up housebuilding, and in Port Talbot, to break down barriers in the system to growth.

For the first time, business cases for major projects and programmes are being published consistently, strengthening transparency so the public can see how decisions are made and ensure they have confidence that every pound is delivering maximum value. 

These reforms will shape decisions on the likes of Northern Powerhouse Rail, ensuring wider considerations like the impact on local growth, jobs and prosperity are taken into account. It will also support mayors with investing £900 million of local growth funding more effectively over the next four years.

In her letter, Chancellor of the Exchequer, Rachel Reeves, told mayors:

This work sits at the heart of the government’s commitment to drive growth and increase living standards in every region.  I am grateful for the continued partnership between central government and mayors in shaping and delivering this crucial agenda. 

While there is more to do to fully embed these changes, we are on the path to building a system that supports better decisions, strengthens confidence in how investment is allocated, and helps deliver the long-term growth that communities across the UK both need and deserve.

This follows the Chancellor’s Mais lecture – where she identified regional growth as one of her three economic priorities.

The press release issued by HM Treasury on 29 June 2026.

Taskforce set up by government to encourage young people to claim their Child Trust Funds.

• Nationwide, HSBC UK, Sheffield Mutual and One Family among members of new taskforce meeting for first time as government takes action to reunite young people with unclaimed Child Trust Funds  
• The Taskforce will improve coordination across government and industry to encourage more young people to access their unclaimed matured funds 
• More than 750,000 young people have unclaimed accounts worth £2,200 on average

Hundreds of thousands of young people could soon be reunited with unclaimed savings worth more than £1.6 billion, as the government launches a new push to trace matured Child Trust Funds (CTFs).

Around 6.3 million Child Trust Fund accounts were opened for children born between 1 September 2002 and 2 January 2011, predominantly by parents and guardians, with the remainder established by HMRC. Accounts can go unclaimed for a number of reasons difficulty locating them, people forget they have them, or a decision to leave the funds invested for the time being.

Child Trust Funds were introduced to give every child a financial asset at adulthood, and this government is doing everything it can to make sure young adults are aware of and can access their accounts.

To make this happen, Economic Secretary to the Treasury, Rachel Blake MP, has convened a new Child Trust Fund Taskforce, bringing together CTF providers and the Government to drive a coordinated effort to increase reunification of accounts. 

Members of the Taskforce will include One Family, Coutts, Nationwide, HSBC UK, Pilling, The Coventry (Co-operative), Sheffield Mutual, Unity Mutual, Forester, Healthy Investments and The Share Foundation – with the first meeting happening today. 

More than 750,000 young adults still have unclaimed matured accounts, holding £2,200 on average. The funds were originally set up by the government for those born between 1 September 2002 and 2 January 2011. The Taskforce will improve coordination across government and industry to encourage more young people to access their unclaimed matured CTFs.  

Rachel Blake, Economic Secretary to the Treasury, said:

Too many young people are missing out simply because they are not aware of where their Child Trust Fund is or how to access it. 

We are acting to fix that by bringing government and industry together – improving coordination and making it easier for people to find and claim what’s rightfully theirs.

JP Marks, HMRC’s Chief Executive and First Permanent Secretary, said:

Many young people have Child Trust Fund accounts with an average £2,200 waiting to be claimed. This is their money, and we want to do all we can to help them find and access it. 

If you think you have one, you can use the ‘Find my Child Trust Fund’ tool on GOV.UK to find out where your account is held.

The Taskforce will bring providers together to improve tracing approaches, test more effective engagement with young people, and drive practical actions that lead to more accounts being claimed.  

Today’s move builds on existing action to tackle unclaimed matured accounts, including ongoing HMRC communications campaigns and direct letters going out to eligible 21-year-olds. 

Anyone born between 1 September 2002 and 2  January 2011 can search for their account on GOV.UK. The search is free, requires only a National Insurance number, and takes minutes. Those aged 18 or over can access funds immediately. 

Jim Islam, Chief Executive Officer, OneFamily, said:

We welcome the creation of the Child Trust Fund Taskforce to help more young people access their savings. We know from our own experience that making this process as easy as possible is essential and we look forward to working together with government and industry partners.

Child Trust Funds have already provided a valuable financial boost to millions of individuals who have claimed their accounts as they enter adulthood, making a real difference to people’s lives.

We’re committed to playing our part in helping people who have not yet claimed. Anyone born after 1 September 2002 who has already turned 18 will have a Child Trust Fund, and can search for their account on the government website.

Philip Kurtenbach, Head of Product Management & Governance, Wealth & PB, HSBC UK said:

At HSBC UK, we’re committed to putting customers at the heart of everything we do. We know that having a fund to support young people as they start adult life can make a real difference – opening up opportunities at a pivotal moment in their lives. That’s why we’re supporting the HMT Taskforce as the industry comes together to ensure the funds reach those they were intended for.

Richard Stocker, Head of Savings, Nationwide said:

Nationwide is pleased to be part of the Child Trust Fund taskforce and fully supports its aims. We remain committed to working collaboratively across the industry to build on the progress made so far and deliver a meaningful outcome on this important issue.

Notes to editors

• The Child Trust Fund scheme was introduced in 2005 to give every child a financial asset for the future. It applied to eligible children born between 1 September 2002 and 2 January 2011, with the Government making a payment into each account. 
• Accounts began maturing on 1 September 2020, and more than 750,000 matured accounts remain unclaimed, with an average value of about £2,200. Many eligible young people, now aged 15 to 23, may not know they have an account. The total value of unclaimed funds runs into hundreds of millions of pounds. 
• The Taskforce aims to break down barriers to opportunity and give young people the best start to adult life. It also aligns with the National Youth Strategy, which identifies financial insecurity as a key pressure and calls for practical action.

The press release issued by HM Treasury on 23 June 2026.

A new government counter-fraud squad has launched investigations against those who defrauded the public during the Covid pandemic.

• New enforcement unit pursues billions lost to British taxpayers during pandemic
• Recovery efforts intensify as nearly 2,000 company directors banned and 86 criminals prosecuted
• Investigators will be able to search properties, seize assets, and recover money directly from the bank accounts and wages of those who cheated the system

The Public Authorities Fraud Investigation and Enforcement Service (PAFIES) has begun pursuing suspected fraudsters, armed with the strongest investigatory tools in a generation.

Now, new powers will give investigators the ability to search the premises of suspected fraudsters and seize money directly from fraudsters’ bank accounts if they do not pay back what they owe. On top of that the window to pursue Covid fraudsters has been doubled from six to twelve years with all new powers becoming available to the government fraud squad this autumn.

The further action comes as measures introduced at the 2024 and 2025 Budgets are calculated to have protected £7.5 billion of public money from fraud over two years.

Chancellor Rachel Reeves said:

“In contrast to the last government, who left the door open to £10.9 billion of pandemic era fraud and error, we have taken action to protect £7.5 billion of public money.

“My message to those who owe the public purse money is clear – those who profited, will pay.”

Satvir Kaur, Parliamentary Secretary in the Cabinet Office said: 

“Those who chose to exploit a national crisis to line their own pockets now have nowhere left to hide.
“Our decision to go after those who have cheated the system as part of our wider crackdown on fraud against public services has already helped save £7.5 billion. We will use every tool at our disposal to protect public money and fund the frontline services the British people rely on.”

The crackdown comes as the Chancellor announced the government’s response to the Covid Counter Fraud Commissioner’s final report, which laid bare the full scale of pandemic fraud. £10.9 billion— money that should have funded the NHS and our schools — was initially lost to fraud.

Nearly 2,000 company directors have already been banned and 86 criminals prosecuted to date.

Powers from the PAFER Act 2025 extended the limitation period for civil claims relating to Covid fraud against public authorities from six years to twelve, meaning that suspected fraudsters can be pursued until 2032.

The Act will also give the government fraud squad powerful new tools to tackle fraud, including enhanced investigation, search-and-seizure, and information-gathering powers, with the authority to compel information from third parties.

It also introduces civil financial penalties to accelerate enforcement and enables the direct recovery of fraud-related debts from earnings and bank accounts following a PSFA investigation.

Those who did not respond to Voluntary Repayment Scheme last year will now face the full force of the new powers in the autumn.

A Covid fraud reporting website, set up in September last year, has received over 1,000 reports of suspected fraud.

The press release issued by HM Treasury on 23 June 2026.

Professor Jonathan Haskel CBE has been nominated as candidate for the Chair of the Office for Budget Responsibility (OBR).

Today, the Chancellor has announced Professor Jonathan Haskel CBE as her nominated candidate for the Chair of the Office for Budget Responsibility (OBR)

Professor Haskel is a Professor of Economics at Imperial College London. His research focuses on productivity and growth, and he has held senior roles across academia, public policy and independent oversight.

He served as an External Member of the Bank of England’s Monetary Policy Committee from 2018 to 2024, a non-Executive Director of the UK Statistics Authority from 2016 to 2022, and an External Member of the Reporting Panel of the Competition and Markets Authority from 2001 to 2009.

The Treasury Committee approves all appointments to the Budget Responsibility Committee, including the Chair. Professor Haskel will appear before the committee for a pre-appointment hearing in due course and it is anticipated he can could take up his post in good time to oversee the OBR produce its forecast alongside the Budget later this year.

In the interim, Budget Responsibility Committee members Professor David Miles and Tom Josephs will continue to lead the OBR. 

Chancellor of the Exchequer, Rachel Reeves, said:

Jonathan Haskel is an outstanding nominee for Chair. His depth of expertise in economics and his track record of independent, rigorous analysis make him exactly the right person to lead the OBR – supporting the credibility of our fiscal framework and ensuring our economy is underpinned by sound public finances. 

Professor Jonathan Haskel said:

I am honoured to be nominated as the next Chair of the OBR. The OBR plays an indispensable role in maintaining the transparency and integrity of the UK’s public finances, and I am committed to upholding that. I would thank the Imperial College staff and students I have worked with over the past years. I also want to thank Professor David Miles and Tom Josephs for their outstanding leadership of the OBR during this period.

The OBR has executive responsibility for producing the official UK economic and fiscal forecasts, assessing the Government’s performance against its fiscal rules, and reporting on the sustainability of and risks to the public finances. As an independent institution, the OBR is committed to providing objective, transparent and impartial analysis. 

As with all Treasury appointments, the recruitment process was designed to ensure the most qualified candidate was appointed from the broadest possible pool of applicants.

Further information

• Professor Haskel’s appointment will be confirmed subject to the Treasury Select Committee’s pre-appointment scrutiny and consent, in line with the requirements of the Governance Code for Public Appointments.
• Jonathan Haskel has been Professor of Economics at Imperial College Business School since 2008. His research focuses on productivity and growth. He served as an External Member of the Bank of England’s Monetary Policy Committee from 2018 to 2024, a non-Executive Director of the UK Statistics Authority from 2016 to 2022, and an External Member of the Reporting Panel of the Competition and Markets Authority from 2001 to 2009. He has held academic positions in both the UK and the United States.

The press release issued by HM Treasury on 19 June 2026.

Chancellor and Chief Secretary to the Prime Minister announce new drive to use power of public spending to strengthen national security and economic resilience.

• New procurement guidance will protect national security and enhance supply chain resilience across critical sectors
• Government separately confirms £5 billion in contracts awarded to British firms since March, accelerating delivery of the modern Industrial Strategy in priority sectors, and supporting growth in key industries
• Communities across the country to benefit from Farnborough to Huddersfield, and Edinburgh to Solihull

Every year the government spends around £400 billion on public procurement, and for far too long this spending has been focused too narrowly on short-term requirements and upfront costs.

This has left the UK exposed to global shocks, with recent events showing the fragility of global supply chains. This new guidance draws a line under that approach and works to protect the UK’s national security and build resilience in critical sectors.

Through the new guidance, the Chancellor, alongside the Chief Secretary to the Prime Minister, highlight the power of public spending to safeguarding sovereign capability, supporting businesses, jobs, and skills across the UK, with real money going straight to communities from Farnborough to Huddersfield, and Edinburgh to Solihull.

The Chancellor will also today confirm that British founded-firms have already seen a £5 billion surge in new government contracts since March, targeting high-growth sectors central to the Industrial Strategy.

Chancellor of the Exchequer Rachel Reeves said:

We have the right economic plan – using the power of public procurement to protect our national security and strengthen the UK’s economic resilience.

British companies are delivering the innovation and resilience we need in a more uncertain world. This government will continue to back British businesses as we strengthen our national security and economic resilience.

Chief Secretary to the Prime Minister Darren Jones said:

From the closure of the Strait of Hormuz to Russia’s invasion of Ukraine driving up energy bills, recent events show why we need to protect our national security, and invest in home-grown British expertise and industry to secure our sovereign capability.

For too long, governments have prioritised short-term buying decisions that leave us vulnerable to the actions of others. This guidance will change that. From shipbuilding in Barrow to steel in Scunthorpe, we will make national security a priority and back British businesses and jobs.

Technology Secretary Liz Kendall said:

Every child deserves access to world class support with their schoolwork, regardless of where they’re from or what their parents can afford. Today we are making that a reality.

These six British companies are developing world-leading AI that genuinely works in the classroom – safe, effective, and built around the needs of both pupils and teachers.

Up to 450,000 disadvantaged children will benefit from this ambitious investment. This government is breaking down barriers to opportunity and giving every young person the best start in life.

Cabinet Office Minister Chris Ward said:

This government is determined to make every penny of our procurement budget work for British businesses and national security. This is another big step toward that, and to boosting growth and resilience across the country”.

Since March, the government has awarded a number of new deals to British firms including:

• A new digital platform to support RAF pilots in flight
• AI fraud detection tools to help HMRC identify tax errors faster
• Essential road and vehicle recovery services on the strategic road network.

Up to 450,000 disadvantaged pupils are set to benefit from future-generation technology in AI tutoring from 2027. Six British organisations are among those selected and will receive £1.8 million to help build the next generation of safe and effective AI tutoring tools that will set the global standard for effective AI models.

Mayoral Strategic Authorities are also playing a crucial role in the new push, such as with West Yorkshire Combined Authority and Greater Manchester Combined Authority procuring new local electric buses and steel from UK businesses.

New guidance on national security and resilience

The new guidance sets out the process for departments to use the national security exemption within the Procurement Act 2023 in key sectors to support the country’s national security and economic resilience. To support this new approach, the government has appointed dedicated Sector Leads in key departments across Whitehall. 

These Leads will support Ministers and oversee upcoming procurements, so they can appropriately apply the national security exemption for contracts – supporting national security and stronger supply chains, while helping ensure the UK is better prepared in an increasingly uncertain world.

Alongside this, the Treasury will be writing to accounting officers across government on the importance of protecting national security through future spending decisions. This will provide guidance on the use of the exemption to deliver value for money.

Both new pieces of guidance are consistent with our international trade agreements and complement the government’s work with international partners to improve the security and resilience of key sectors, ensuring that we can collectively respond to global challenges.

This includes recognising that our global trading partners and close allies will often have suppliers well-placed to help us meet our security needs. Our approach is built on collaboration; trusted international partners and global suppliers are at the heart of our procurement strategy, bringing the innovation and resilience we need to stay secure.

The government also announced the publication of the Supply Chain Centre’s mission statement and action plan this week, setting out a new cross-government approach to securing the inputs the UK economy relies on and boosting supply chain resilience.

Kate Shoesmith, Director of Policy and Insights, British Chambers of Commerce:

 “The world order has shifted dramatically in the last five years and a stronger government focus on economic security and supply chain resilience is one we support.

Our Chambers are involved in infrastructure projects across the UK and know how investment in British firms can be transformative for local economies and communities.

One third of all the money that government spends is on procurement so its potential to shift the dial is huge.

Opening the system up to more SMEs is also one of the best and quickest ways to increase the impact this spending has. Chambers will be keen to get involved in the supply chains for these projects to maximise that effect.