British firms to be favoured in defence spending

Ministers will use national security exemptions to give priority to British companies over foreign ones when awarding defence contracts, Defence Secretary John Healey has said.

Healey outlined plans to favour British firms in procurement decisions, as the government faces sustained pressure to publish its long-delayed investment plan for defence.

Unions and defence firms have warned the continued delay to the blueprint is a threat to British jobs, skills and national security.

Chancellor Rachel Reeves has also expressed frustration that too many government contracts are going abroad, telling cabinet ministers last month they must do more to prioritise investment in Britain.

Speaking at the GMB Union's congress on Tuesday, Healey said the chancellor was "right recently when she said we need to buy British".

He announced how his department intended to prioritise spending on UK firms and change the "toothless" procurement system, describing the approach as "unashamedly pro-Britain".

He said: "The government will develop a new approach that looks to give credit in future defence contract decisions to British-based companies based on a genuine, substantive presence in Britain and long-term commitments to British communities and British supply chains.

"As part of this drive, I can announce I will make greater use of national security exemptions for defence contracts - which allow the government to require certain capabilities to be built in Britain - supporting our UK industrial base and your members' jobs.