Rachel Reeves has told ministers that energy infrastructure contracts should go to British firms wherever possible, as part of a wider “buy British” push across strategic industries.
According to a report in The Guardian, the Chancellor has written to cabinet colleagues warning that too much government business is still being sent overseas.
The intervention covers four critical sectors: energy, shipbuilding, steel-making and artificial intelligence.
Treasury and Cabinet Office officials will now monitor billions of pounds of public procurement in those areas and could override departmental decisions if ministers fail to consider the wider national interest.
The energy angle is particularly sensitive, Labour is trying to sell clean power as an industrial strategy, not just a climate policy, meaning offshore wind, grid upgrades, nuclear, AI infrastructure and steel supply chains all have to be seen to create British jobs.
The Guardian reports Reeves is uneasy about the possibility that turbines for a major North Sea offshore wind farm could be made by Chinese company Mingyang.
That concern sits alongside frustration over other major contracts going abroad, including a £200m navy support vessel deal awarded to Dutch shipbuilder Damen and a £9m refit contract for the research vessel David Attenborough signed with Danish yard Orskov.
The Chancellor is also reportedly concerned that a £1.9bn contract to upgrade the Faslane shipyard, which services Britain’s nuclear submarines, could go overseas through a competitive tender.
In the letter, co-signed by Cabinet Office Minister Chris Ward, Reeves said: “We should all want to see more businesses grow and prosper and create good, skilled jobs and apprenticeships here in Britain.”
She added: “Every secretary of state can and must lead this agenda within their departments if we are to deliver the change the public expect.”
The Guardian says Reeves told ministers it was “disappointing” that too many contract awards were still failing to support UK businesses.
The row comes as concerns grow over Britain’s exposure to global shocks, including the Iran war and its impact on energy supplies.
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