Chancellor Rachel Reeves instructs ministers to prioritize British companies

Procurement Directive

UK Chancellor Rachel Reeves has instructed cabinet ministers to prioritize British companies when awarding government contracts in four critical industries. In a letter seen by The Guardian, the chancellor told every cabinet minister in charge of a spending department to "buy British" wherever possible.

The directive specifically targets the procurement of ships, steel, energy, and artificial intelligence. Reeves indicated that the government should prioritize "Britishness" alongside cost considerations when awarding these contracts.

Concerns Over Foreign Spending

The move follows expressed irritation from the chancellor regarding the amount of government business being sent abroad. According to the letter, Reeves stated she was "disappointed" that ministers were not already prioritizing domestic providers in these key sectors.

Economic Context

The directive comes as the UK government manages various fiscal and economic pressures. In September 2025, Reeves stated that the government should focus on assisting the Bank of England in its efforts to lower inflation.

Additionally, the chancellor has engaged in international trade efforts, including negotiations for a trade deal in Washington D.C. in April 2025. In October 2025, she promoted the UK as being "back and open for business" while meeting with industry leaders via the Business Council to "turbocharge the British economy".

More recently, Reeves indicated that the UK has "turned a corner" economically, citing that the UK economy was reported to have grown by 0.6% in the first quarter of 2026.