Utility companies operating electricity, gas and water networks will be expected to create jobs and apprenticeships in Britain as they invest, the government has said. If they do not follow this lead, legislation will be introduced when parliamentary time allows, according to the government's announcement.
Key points
- Utility firms — expected to support British jobs and skills through their procurement, with legislation threatened if they do not act.
- National Shipbuilding Office — given oversight of all civil shipbuilding to ensure national interest and taxpayer value.
- New Insourcing Unit — based in the Office for the Prime Minister and Cabinet to coordinate bringing services back in-house.
The National Shipbuilding Office will be given oversight of all civil shipbuilding across government. This is intended to provide a clearer pipeline of demand and a simpler route for ship procurement, including working with European allies. More details will be set out in the Shipbuilding and Maritime Technology Action Plan later this year by the Ministry of Defence.
A new research vessel for the Centre for Environment, Fisheries and Aquaculture Science will be built in the UK, with the contract open only to UK shipyards. Defra has applied the national security exemption in the Procurement Act 2023 to this contract. The vessel will replace the RV Cefas Endeavour and will monitor fish stocks, pollution levels and map the seabed, using automation, robotics, artificial intelligence and clean fuels.
A new Insourcing Unit within the Office for the Prime Minister and Cabinet will coordinate departmental insourcing, unblock barriers and identify opportunities to maximise value for money. It will consider insourcing critical service contracts and support reducing consultancy spending by building Civil Service talent. The Cabinet Office will look to bring its building management services, including cleaning and security staff, back in-house when current contracts end in 2028, subject to completing a Public Interest Test.
What it means in practice
The government's plans could affect how utility companies hire and train staff, and may lead to more public services being delivered directly by the Civil Service. For households, this may not bring immediate changes, but over time it could influence job opportunities and how public money is spent.
- Job seekers — more apprenticeships and roles in utilities and shipbuilding could become available.
- Taxpayers — the focus on value for money and insourcing aims to reduce spending on external consultants.
- Businesses — utility companies may need to adjust their procurement to prioritise UK jobs and skills.
