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“Buy British” must mean building Britain’s future defence, says Prospect

29 June 2026

Chancellor Rachel Reeves has sent a clear message to government departments: where possible, they should “buy British” when awarding contracts in key strategic sectors, including shipbuilding, steel, energy and artificial intelligence.

The new procurement guidance has been introduced to protect national security and enhance supply chain resilience across critical sectors.

It also reflects growing concerns that too much public procurement has been flowing overseas rather than supporting UK jobs, skills and industrial capability.

For defence workers, this is a significant development. Shipbuilding and steel are fundamental to Britain’s defence industrial base, supporting everything from Royal Navy warships and submarines to the wider supply chains that sustain thousands of highly skilled jobs across the UK.

By recognising these sectors as critical to national security, the government is signalling that value for money should not be measured on cost alone, but also on the economic, employment and strategic benefits of maintaining sovereign capability.

The defence sector already contributes billions to the UK economy and supports jobs in every region. Recent government commitments to increase defence spending provide an opportunity to ensure that taxpayer investment delivers long-term employment, apprenticeships and skills development.

Bob King, National Secretary for Defence, said:

“For members working across defence, aerospace, shipbuilding and advanced manufacturing, this is a debate that goes to the heart of our members’ future. If Britain is serious about being a defence industrial power, government contracts must support the workforce and industrial capacity that make that ambition possible.

“Prospect sit on the DIJC Delivery group and are working with Government and industry to define what is a ‘sovereign’ company. If we’re able to get the correct definition, this should secure a better future for our members and give UK industry better opportunities for MOD work, just as companies in other countries, have advantages in their own domestic markets.”

Prospect welcomes any policy that supports skilled British jobs and strengthens domestic manufacturing capability. However, the real test will be implementation: “Buy British” must become more than a slogan and translate into procurement decisions that back UK workers and the communities that depend on them.