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New UK policy designates steel, energy, shipbuilding, AI as national security priorities

30 Mar 2026 15:01 reported by Joy Liu

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The British government is implementing new procurement reforms that classify steel, energy infrastructure, shipbuilding, and AI as vital to national security.

Under this guidance, departments must prioritize domestic suppliers to strengthen economic resilience and protect fragile global supply chains. For steel specifically, officials must now provide a formal justification if they choose to source materials from overseas instead of using British products.

These measures also include a Public Interest Test for contracts exceeding £1 million to determine if services are more cost-effective when delivered in-house. By focusing on local jobs and apprenticeships, the government aims to use public spending to drive long-term investment and support its Modern Industrial Strategy across the country.

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