24.08.2026

Public procurement is one of the most powerful levers Government has to support economic growth, strengthen supply chains and build the UK’s long-term industrial resilience.

Recent Procurement Policy Notes set out a welcome shift in approach. PPN 026 will simplify bidding requirements for contracts worth up to £1m, making it easier for smaller businesses to compete and demonstrate their innovation. It will also increase the weighting for local community benefits from 10% to 20% for contracts worth £5m or more.

Alongside this, PPN 025 gives government departments guidance on using existing powers under the Procurement Act 2023 to support critical UK capabilities in areas such as steel, shipbuilding, artificial intelligence and energy infrastructure.

Make UK supports these steps. They recognise that procurement policy should look beyond lowest cost and consider the wider economic, social and strategic value delivered by suppliers.

However, further action is needed if procurement is to fully support UK manufacturing, strengthen national resilience and improve opportunities for SMEs. This means embedding industrial resilience more clearly into procurement decisions, extending these principles across defence procurement, and ensuring the definition of a UK-based business reflects genuine investment in UK jobs, production, R&D and intellectual property.

This is not about closing markets or excluding international partners. The UK benefits from open competition and strong industrial relationships with allies, including European partners. But procurement policy must better recognise where domestic capability, secure supply chains and national security are at stake.

In this briefing, Make UK sets out why procurement reform matters and recommends that Government should:

  • Embed industrial resilience as a core consideration within procurement policy.
  • Extend existing procurement guidance to wider defence and strategic capability areas.
  • Strengthen the definition of a UK-based business to reflect meaningful investment in the UK economy.
  • Increase opportunities for SMEs to compete, innovate and support resilient supply chains.

Read the briefing to explore how procurement can better support British innovation, social value and long-term industrial resilience.

Available resources