The future of UK manufacturing

Book excerpt: The public sector spends nearly £125 billion, or ten per cent of GDP, each year purchasing goods and services in the UK economy. The manufacturing sectors most heavily involved in selling to Government include food, paper and printing, pharmaceuticals, construction products, aerospace and environmental technology. Following on from two previous Committee reports which have examined issues of concern to the UK manufacturing industry (relating to skills shortages in UK manufacturing industries (HCP 493-I, session 2006-07, ISBN 9780215033970) and government support for exporters (HCP 557, session 2006-07, ISBN 9780215034380)), this report focuses on whether the rules and practices relating to procurement of goods and services by public authorities hinder or help UK manufacturers in obtaining public contracts. The report argues that the Office of Government Commerce (OGC) should have powers to enforce the implementation of best practice guidance on procurement policy, and recommends that OGC guidance on the use of public procurement to further social policy and equality aims does not go far enough and should be reviewed. It also highlights the need for better trained and higher quality procurement officials throughout the public service, supported by floating teams of experts in particular procurement areas.