Initiatives to Transform and Modernise the State

Utility companies, encompassing electricity, gas, and water networks, will be required to foster job creation and apprenticeships throughout the UK as part of their future investment strategies. This initiative aims to ensure that local communities reap the benefits of growth and sustainable employment opportunities.

Government Commitment to Public Spending

Earlier this year, significant changes were made to central government spending policies, with a renewed focus on ensuring that public expenditure serves the interests of the public. New guidelines have been established to guarantee that funding not only bolsters skills but also creates job opportunities within communities nationwide.

In a bold move, the government has indicated that utility companies are to utilise their procurement processes to support local jobs and manufacturing skills. Should these companies fail to align with this directive, the government has signalled its intent to introduce legislation when parliamentary time permits, compelling them to comply.

Revitalising the Shipbuilding Industry

In addition to supporting utility companies, new measures are set to secure major government spending within the framework of the national interest. The establishment of the National Shipbuilding Office is a key component of this strategy, tasked with overseeing all future civil ship procurement. This strategic centre aims to provide robust support for the UK shipbuilding industry, creating a clearer and more predictable demand pipeline while facilitating a streamlined procurement process, including collaboration with European allies.

The Ministry of Defence is expected to provide further insights into these measures with the forthcoming release of the National Shipbuilding Office’s Shipbuilding and Maritime Technology Action Plan, anticipated later this year.

Furthermore, the government has announced plans for a new research vessel for the Centre for Environment, Fisheries and Aquaculture Science, which will be constructed in the UK. This contract will be exclusively available to British shipyards, reflecting the decision by Defra to invoke the national security exemption under the Procurement Act 2023, thereby safeguarding the UK’s sovereign shipbuilding capabilities, deemed essential for national security.

Replacing the RV Cefas Endeavour, the new vessel will enhance national monitoring of UK waters, focusing on tracking fish stocks, assessing pollution levels, and mapping the seabed. Equipped with cutting-edge technology, including automation, robotics, and artificial intelligence, the vessel will operate on clean fuels, positioning the UK as a frontrunner in marine science while minimising environmental impact.

Establishment of the Insourcing Unit

A new Insourcing Unit, situated within the Office for the Prime Minister and Cabinet, will be established to streamline departmental insourcing efforts, eliminate obstacles to delivery, and uncover cross-government opportunities aimed at maximising value for money while reinstating direct operational accountability.

This unit will review the potential for insourcing critical service contracts, complementing the recently introduced Public Interest Test applicable to most central government service contracts exceeding £1 million in value. The Insourcing Unit is also designed to curtail spending on consultancy and professional services by enhancing the skills and resources within the Civil Service.

In line with previous announcements, the unit will assist departments with their insourcing initiatives. Subject to the completion of the Public Interest Test, the Cabinet Office intends to reinstate its building management services, including cleaning and security personnel, back in-house at the earliest opportunity, with this transition commencing upon the conclusion of current contracts in 2028.