UK Procurement Reform Urged to Support British Manufacturing
UK procurement reform
UKFT Urges Procurement Reform to Strengthen British Manufacturing
The UK Fashion and Textile Association has called for changes to public procurement rules, arguing that government purchasing should do more to support domestic manufacturing, industrial resilience and skilled employment.
UKFT has submitted evidence to the House of Lords Industry and Regulators Committee as part of its inquiry into the relationship between the Government and the defence industry.
Although the association’s evidence concentrates on technical textiles, defence textiles and applied manufacturing, UKFT says many of the barriers affect manufacturers throughout the British fashion and textile supply chain.
Key points
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UKFT wants public contracts to recognise more than the lowest initial price.
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The association says domestic capability, resilience, innovation and employment should form part of value-for-money assessments.
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Its submission focuses particularly on defence and technical textiles.
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The recommendations could have wider implications for UK fashion, textiles and advanced manufacturing.
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The House of Lords inquiry is accepting written evidence until 21 July 2026.
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Any resulting recommendations would still require consideration and action by the Government.
UKFT challenges the focus on upfront cost
UKFT argues that current Treasury guidance and procurement practices can place excessive weight on the initial unit price of a product.
This approach, it says, does not always account adequately for the broader economic and strategic value generated when goods are manufactured in the UK.
That wider value can include resilient domestic supply chains, skilled employment, manufacturing investment, innovation, tax revenue and a reduced dependence on overseas suppliers.
The association believes these considerations should be incorporated more consistently into assessments of value for money.
Its position does not mean that British suppliers should receive contracts automatically. Rather, UKFT is seeking a procurement system in which strategic, social and economic value is assessed alongside cost, quality and technical performance. UK procurement reform
Defence textiles expose a wider manufacturing problem
Defence and technical textiles illustrate the issue particularly clearly.
UK manufacturers produce specialist fabrics, protective clothing and other textile products for demanding international customers, including NATO countries. UKFT says some of these businesses can compete successfully overseas but still find it difficult to secure comparable public contracts in their home market.
The association argues that purchasing decisions based mainly on short-term price risk weakening the industrial capacity that the country may later need during emergencies, international disruption or periods of increased defence demand.
Recent independent industry coverage of UKFT’s intervention similarly reported that the proposed reforms are intended to give greater recognition to supply-chain resilience, skilled jobs, tax receipts and long-term economic value when contracts are awarded.
Procurement as part of industrial strategy
UKFT wants public procurement to be treated as a strategic component of industrial policy rather than as a largely transactional purchasing exercise.
Its recommendations include changes to Treasury value-for-money guidance, greater recognition of strategically important manufacturing sectors and more transparent procurement processes.
The association is also seeking stronger engagement between public authorities and manufacturers before tenders are issued.
Earlier consultation could help procurement teams understand domestic production capabilities, realistic delivery requirements and the consequences of contract specifications that unintentionally exclude smaller UK suppliers.
Better engagement could also provide manufacturers with more confidence to invest in machinery, workforce development and production capacity.
House of Lords examines government–industry relationship
The House of Lords Industry and Regulators Committee launched its defence-industry inquiry on 10 June 2026.
The committee is examining how the Government works with defence businesses, whether procurement supports the UK’s strategic objectives and what changes might improve industrial capacity, innovation and competitiveness. It plans to hold public evidence sessions between June and September and report to the House of Lords in the autumn.
The inquiry remains open for written submissions until 11:59pm on 21 July 2026. UKFT’s paper is therefore evidence offered to an active parliamentary investigation, not an announcement of an agreed change in government policy.
The committee also held an oral evidence session on 14 July examining the relationship between government and the defence sector. The witnesses included General Sir Richard Barrons and Lord Robertson, the lead external reviewer of the Strategic Defence Review. UK procurement reform
Potential benefits for fashion and textiles
Although defence procurement is the immediate focus, UKFT is using the submission to advance a wider case for British manufacturing.
Many textile businesses face high energy costs, skills shortages, uncertain order volumes and intense competition from countries with lower production costs or stronger government support.
Longer-term and more transparent public contracts could help qualifying manufacturers plan production, retain specialist workers and justify investment in equipment and training.
UKFT also believes that procurement reform could support innovation. Public-sector demand can give companies a commercial reason to develop more durable materials, lower-impact production methods and new technical products.
However, any preference for domestic production would need to comply with applicable procurement legislation and the UK’s international obligations. Contracting authorities would also need clear and measurable criteria to prevent “British value” from becoming a vague or inconsistently applied concept. UK procurement reform
UKFT proposes a broader definition of value
The central question raised by the submission is how public value should be calculated.
A lower purchase price may reduce immediate expenditure, but it does not necessarily represent the lowest total cost over the full life of a contract.
Durability, maintenance, replacement frequency, delivery reliability and exposure to international supply disruption can all influence the final cost to taxpayers.
Domestic manufacturing can also produce benefits outside the purchasing department’s budget, including employment, training, regional investment and tax receipts.
UKFT therefore wants procurement assessments to consider whole-life and strategic value alongside the price quoted at the beginning of a contract.
A sensitive period for government policy
The intervention comes during a period of political transition. As of 15 July 2026, Sir Keir Starmer remains Prime Minister, although he is preparing to leave office. Government sources still list him as the current office holder, while current reporting indicates that a change of prime minister is expected shortly.
UKFT says it intends to present its case to the next prime minister, ministers, Parliament and industry organisations. Its objective is to build support for procurement rules that give capable British manufacturers a fair opportunity to compete.
The organisation is linking this campaign to its wider priorities, including reducing industrial energy costs and improving fashion and textile education and training.
What UKFT wants to change
UKFT’s proposed direction can be summarised in five areas:
Broader value-for-money assessments
Procurement decisions should measure whole-life cost, security of supply, domestic capability, innovation and economic impact rather than concentrating narrowly on the cheapest initial bid.
Recognition of strategic sectors
Government should identify manufacturing capabilities that are important to national security, emergency preparedness and long-term economic resilience.
Greater transparency
Businesses need clearer information about how tenders are evaluated, why contracts are awarded and how non-price considerations influence the final decision.
Earlier industry engagement
Public authorities should consult manufacturers before finalising specifications so that tenders reflect current technologies and realistic production capabilities.
A fair opportunity for UK suppliers
Tender requirements should not unnecessarily prevent smaller or domestic manufacturers from competing, provided they meet the required standards for quality, performance, delivery and value.
Reform would require practical safeguards
Changing procurement policy would not guarantee that every public contract remained in the UK, nor would it remove the need for competitive pricing.
A credible system would require objective evaluation criteria, published scoring methods and robust oversight.
Contracting bodies would also need to distinguish genuine domestic economic value from superficial claims based only on a supplier’s registered address. Relevant questions could include where products are manufactured, how much domestic value is added, where employees are based and how resilient the underlying supply chain is.
Such safeguards would be important for protecting competition and ensuring that procurement decisions deliver demonstrable value for taxpayers.
Why the debate matters
Recent disruption to international supply chains has increased attention on the UK’s ability to produce strategically important goods.
For the textile sector, the issue covers more than military uniforms. Domestic technical-textile expertise can support protective equipment, healthcare, aerospace, transport, emergency services and other specialised applications.
Once specialist machinery, skills and production capacity disappear, rebuilding them can be expensive and slow. UKFT’s argument is that procurement decisions should account for this long-term risk before domestic capability is lost.
The House of Lords inquiry does not ensure that UKFT’s recommendations will become policy. It does, however, give the textile industry an opportunity to place procurement reform within the wider debate about defence readiness, economic growth and national resilience.
The next significant stages will be the closure of the call for evidence on 21 July, further committee hearings and publication of the committee’s report in the autumn.
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