Overview

This bill aims to amend the Procurement Act 2023, introducing a presumption in favour of purchasing British-made goods for public sector procurement. This means public bodies will be expected to prioritize British goods unless there are compelling reasons not to.

Description

The British Goods (Public Sector Purchasing Duty) Bill mandates that public bodies should generally favor goods originating from the UK when making purchasing decisions. This is achieved by amending section 12 of the Procurement Act 2023. The amendment adds a clause requiring public bodies to "exercise a presumption in favour of procuring goods originating in the United Kingdom". This presumption must take into account factors such as social value and securing supply during crises, including conflict. The bill applies across England, Wales, Scotland, and Northern Ireland and will come into effect 90 days after it is passed.

Government Spending

The bill's impact on government spending is unclear. While it may lead to increased spending on UK-made goods in some areas, it could also lead to higher costs if British goods are not competitive on price or quality. No specific figures regarding increased or decreased spending have been provided.

Groups Affected

• Public bodies: These will face a new obligation to prioritize British goods in their purchasing decisions, requiring changes to their procurement processes.
• UK businesses: Businesses producing goods in the UK are likely to benefit from increased demand from public sector contracts.
• Businesses outside the UK: These may see a reduction in public sector contracts awarded to them, potentially negatively impacting their revenues.
• Taxpayers: The ultimate impact on taxpayers is uncertain and depends on the balance between increased costs from prioritizing UK goods and any benefits, such as economic growth in the UK.

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