UK utilities, shipbuilding and government services targeted by new public-spending measures

  • Utility companies will be expected to support British jobs, apprenticeships and manufacturing skills through procurement.
  • The National Shipbuilding Office will oversee future civil ship procurement across government.
  • A new Insourcing Unit will coordinate efforts to bring critical government services back in-house.

The government has announced measures intended to return public spending to public service, including expectations that utility companies will create British jobs and apprenticeships as they invest in electricity, gas and water networks. Their procurement will also be expected to support manufacturing skills and employment, with legislation to follow if companies do not comply with the government’s approach. The National Shipbuilding Office will oversee all future civil ship procurement, creating a central mechanism for a clearer and more predictable pipeline of demand for UK shipyards and a simpler procurement route, including cooperation with European allies. A new UK-built research vessel for the Centre for Environment, Fisheries and Aquaculture Science will replace the RV Cefas Endeavour and monitor fish stocks, pollution and the seabed using automation, robotics and artificial intelligence. A new Insourcing Unit within the Office for Prime Minister and Cabinet will coordinate departments’ efforts to bring critical services back in-house, improve value for money and restore direct operational accountability. Its work will complement the Public Interest Test for most central government service contracts valued above £1 million and support reductions in consultancy and professional services spending.

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