UK Steel welcomes new 'comply or explain' procurement rules to back British-made steel
UK Steel has welcomed the publication of the Government's revised Public Procurement Note (PPN) for Steel, the latest in a series of steps to strengthen the purchases of domestic steel in public projects.
The revised guidance introduces a new 'comply or explain' requirement, ensuring contracting authorities actively consider the use of UK-produced steel in public projects and provide greater transparency where alternative sourcing decisions are made.
The new PPN sits alongside recently published national security guidance under the Procurement Act, which formally recognises steel as a strategic national capability and provides contracting authorities with greater flexibility to support resilient domestic supply chains where national security considerations apply, and build on an existing requirement to consult the UK Steel Digital Catalogue when making procurement decisions, meaning there is now no excuse for not knowing what steel products are made and available in the UK. Together, these policies represent a significant strengthening of the Government's approach to steel procurement, recognising the industry's vital role in supporting defence, energy, transport and wider critical national infrastructure.
The revised PPN also introduces clearer reporting requirements for steel procurement and provides practical guidance on identifying UK-produced steel, helping improve transparency throughout the procurement process. UK Steel has worked closely with Cabinet Office and Department for Business and Trade ministers and officials throughout the development of both policies and believes they represent an important step towards ensuring taxpayer-funded infrastructure delivers greater value for the UK economy.
UK Steel Director General, Gareth Stace, said, "For many years, UK Steel has argued that public procurement should deliver greater value for the UK economy by supporting domestic manufacturing, skilled jobs and resilient supply chains. This revised PPN moves procurement beyond simply asking where steel comes from to embedding greater transparency and accountability throughout the purchasing process, utilising the UK Steel Digital Catalogue to drive awareness of product availability.
"The new 'comply or explain' requirement will ensure buyers actively consider UK-made steel and provide greater transparency and accountability where it is not selected, helping turn Government ambition into practical action. As such, this is one of the most significant improvements to public steel procurement in years and a welcome recognition that taxpayer-backed spending should do more to support domestic industry.”
The revised PPN follows a series of measures aimed at strengthening the UK's steel industry, including the Steel Strategy, new trade measures and the publication of national security procurement guidance, reflecting growing recognition across Government that maintaining domestic steelmaking capability is essential to the UK's economic resilience and national security.
UK Steel will continue working with Government and contracting authorities to support implementation of the new guidance and ensure the reforms translate into increased opportunities for UK steel producers across major public infrastructure projects.