Chancellor Rachel Reeves will announce new regulations today aimed at ensuring that ships and steel used in the UK are sourced domestically. The initiative is designed to boost national security by eliminating bids from foreign suppliers, reports BritPanorama.
Under the proposed framework, major infrastructure projects, including new railways and airport runways, will prioritize contracts awarded to British firms. This plan aligns with government efforts to leverage its £385 billion annual procurement budget to create a more robust supply chain.
In her conference speech, Reeves is expected to emphasize the necessity of a resilient economy founded on the principles of domestic steel production, defense capabilities, and energy security.
“Where things are made, and who makes them, does matter,” she will assert, underscoring the importance of national production in infrastructure development.
Focus on Domestic Production
Reeves will emphasize that as the government embarks on constructing new transport links, energy facilities, and other key infrastructure, it seeks to ensure job security and economic stability through local manufacturing.
This announcement follows the UK’s recent £10 billion warship export deal with Norway, projected to sustain 4,000 jobs within the UK. The new rules are a strategic response to the UK’s sluggish economic growth.
Reeves is also expected to address the looming financial challenges, with projections indicating that the Chancellor may need to identify approximately £30 billion in the upcoming Budget to achieve fiscal balance.
