Will the Latest National Procurement Policy Statement Truly Support UK Manufacturers? 

The government has just unveiled its latest National Procurement Policy Statement, which comes into effect from 24th February 2025, promising to give small and medium-sized enterprises (SMEs) and social enterprises a better shot at securing public contracts. On the surface, it sounds like a step forward. However, many UK manufacturers, such as Fashion-Enter Ltd, have seen this before—especially during the COVID-19 pandemic when UK manufacturers were bypassed for the cheapest overseas suppliers for PPE orders.

(Fashion-Enter Ltd’s Factory in Haringey, London)

While British manufacturers were ready and able to produce, contracts worth billions of pounds were awarded to foreign suppliers through intermediaries (including one notorious Baroness), resulting in delayed shipments, subpar products, and squandered taxpayer funds.

This new policy only asks central government departments to set targets for “direct spend with SMEs,” but it says nothing about the wider supply chain or where the actual manufacturing takes place. There’s no mention of requiring products to be made in the UK. This leaves room for large overseas manufacturers to use small UK-based trading companies to fulfil the contracts, thus meeting the SME spending targets without ever supporting UK manufacturing.

This flaw could further disadvantage UK manufacturers. Government departments might meet their SME spending goals while continuing to outsource the manufacturing work overseas. We saw this in action with PPE contracts—UK businesses won contracts, but the manufacturing was done abroad.

The United States solved this problem decades ago with the Berry Amendment, which mandates that the US Department of Defense must purchase American-made textiles and clothing, not just from US companies. This focus on domestic manufacturing has helped establish a strong local supply chain capable of responding quickly in times of crisis.

The government’s emphasis on the lowest possible price misses a larger economic picture. By prioritising local-made products, public procurement could create thousands of skilled manufacturing jobs across the UK. These workers would pay taxes, contribute to their local communities, and help revive the country’s manufacturing expertise. Instead, by outsourcing contracts, we’re investing in other nations’ economies, all while watching our own manufacturing industry shrink.

Beyond economic losses, we saw the vulnerabilities of global supply chains during the PPE crisis. There are also hidden costs in terms of quality control, compliance, and environmental impact from shipping goods across the globe. But the real opportunity lies in rebuilding our manufacturing sector—investing in the latest facilities, training a new generation of skilled workers, and revitalising local communities through well-paid manufacturing jobs.

For meaningful change to take place, public procurement needs a comprehensive overhaul. This includes requiring consideration of total cost of ownership, not just purchase price, establishing real mandates for UK-made goods (not just UK-registered suppliers), and investing in the rebuilding of domestic manufacturing capabilities.

Procurement teams should be trained to understand UK manufacturing potential, while manufacturers must have the security of long-term contracts to feel confident investing in their operations and workforce. Without these reforms, the UK’s remaining manufacturing capabilities could disappear, leaving us increasingly dependent on unstable global supply chains. We’ve already seen how dangerous this can be during a crisis!

Fashion-Enter Ltd’s CEO Jenny Holloway is a board member of Fashion Roundtable, the secretariat to the All-Party Parliamentary Group for Ethics and Sustainability in Fashion. Fashion Roundtable unites industry professionals, policymakers, and stakeholders to shape the future of UK fashion and textiles, with procurement reform being a key focus. For UK manufacturer’s, now is the time to get your voice heard and join the Fashion Roundtable in advocating for local public procurement that genuinely supports UK manufacturing.

The new procurement policy could be a game-changer—but only if it truly supports UK manufacturing rather than adding another layer of importing middlemen. We’ve already seen the negative effects of relying too heavily on overseas supply chains. Let’s seize this opportunity to rebuild British manufacturing through smart procurement policy.