Overview

This bill mandates that UK public bodies prioritize purchasing goods made in the UK. It aims to boost the British economy by increasing demand for domestically produced goods, overriding existing procurement rules to a degree.

Description

The British Goods (Public Sector Purchasing Duty) Bill places a legal duty on all UK contracting authorities to presume in favor of purchasing goods originating in the UK. This presumption overrides existing procurement regulations (Public Contracts Regulations 2015), which prioritize value for money and open competition. However, the duty does not apply to public bodies whose functions are primarily devolved to Northern Ireland, Scotland, or Wales.

The bill defines "contracting authority", "Northern Ireland devolved functions", "Welsh devolved functions", and "Scottish devolved functions" using the definitions already established in the Public Contracts Regulations 2015.

The Act applies across the UK and comes into effect 90 days after it is passed.

Government Spending

The bill's impact on government spending is not directly specified in terms of figures. It is anticipated that government spending will shift towards UK-made goods, potentially increasing costs for some items if comparable British products are more expensive. Conversely, it may lead to cost savings in certain sectors if domestic sourcing proves more efficient.

Groups Affected

• UK Public Bodies: These bodies will be legally required to favor UK-made goods in their purchasing decisions, potentially impacting their procurement processes and possibly their budgets.
• UK Businesses: Businesses producing goods in the UK are likely to benefit from increased demand from public sector contracts.
• Foreign Businesses: Businesses based outside the UK may experience reduced sales to UK public bodies.
• Taxpayers: The impact on taxpayers is uncertain and could be either positive or negative depending on the price difference between UK and foreign goods and any cost-saving measures implemented.

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