Reeves instructs cabinet ministers to 'buy British'

Rachel Reeves has instructed cabinet colleagues to award government contracts in four critical industries directly to British companies, making clear her irritation that ministers have been sending too much government business abroad.

- Kiran Stacey Policy editor

In a letter seen by the Guardian, the chancellor tells every minister in charge of a spending department to "buy British" wherever possible, adding that she is disappointed they are not already doing so.

Officials in the Treasury and Cabinet Office say they will now monitor billions of pounds of contracts in shipbuilding, steelmaking, energy and AI, and if necessary override decisions taken by ministers.

Reeves's letter was sent last week as she attempted to stamp her authority over a restive Labour party, many members of which are expecting a change of leadership within months.

It comes amid a wider battle over who should be chancellor if Keir Starmer is replaced, with allies of Reeves and the energy 13 secretary, Ed Miliband, insisting their chosen candidate should be given the keys to No 11.

In the letter co-signed by the Cabinet Office minister, Chris Ward, the chancellor writes: "We should all want to see more businesses grow and prosper and create good, skilled jobs and apprenticeships here in Britain. Every secretary of state can and must lead this agenda within their departments if we are to deliver the change the public expect."

She added: "Therefore, it is disappointing that we are still seeing too many government contract awards where this is not happening.