Public procurement in the national interest: Reflections from the CMA

Thank you Martin, and thank you to the Chairs and members of all 3 APPGs for bringing us together today.

It is a pleasure to be here to discuss 2 reports the CMA is publishing today on a topic that is becoming central to UK economic policy: public procurement.

Every year, the UK government spends around £400 billion buying goods, services and infrastructure from the private sector. That is a serious amount of taxpayer money, especially in a world of enormous pressure on households and public finances.

Despite this, until recently public procurement hasn’t generally been a headline-grabbing topic. But these are not just administrative decisions. They are decisions which impact whether and which firms grow. Which technologies succeed. Where investment flows. Where value is achieved or wasted. And where the UK has strategic strengths and dependencies. This is the true meaning of ‘purchasing power’ - and governments all around the world are exercising it in ways we have not seen for decades.

In fact, there is growing recognition that public procurement is one of most powerful levers government has in its industrial strategy toolbox to support a stronger, more dynamic and resilient economy.

Today, we have published 2 reports drawing together the findings from in-depth work and engagement we have undertaken over the last 2 years.

Both reports make recommendations to government which we believe could support the UK’s economic success and sovereignty, as well as deliver better value for taxpayers. The fact that we are discussing them with no less than 4 APPGs today, is, itself, a sign of a strong shared view that we must get this right as a country.