Defence Industrial Strategy underscores “industrial security priority” for UK-made steel
9 September 2025
The Defence Industrial Strategy (DIS) publication has signalled a decisive shift in Government procurement policy to recognise the strategic importance of the UK’s steel industry in delivering national defence and security.
The new DIS notes that steel is an “industrial security priority” for supply chains, and marks a departure from the long-standing “global competition by default” approach within the Ministry of Defence (MOD). Instead, a new, clear emphasis is focused on onshoring industrial capability:
- Backing UK-based businesses with longer-term contracts, procurement reforms, and a departure from “competition by default.” following UK Steel’s strong advocacy to improve home-grown supply chains.
- Building a resilient industrial base by securing supply chains, manufacturing capacity, and stockpiles, with the encouragement of inward investment into key industries that promise to boost defence capacity.
- Fixing procurement by simplifying processes, offering greater predictability, and improving transparency, with a greater focus on early market engagement with industry, a key demand of UK Steel in our submission to the Strategic Defence Review.
The strategy’s ambitions are backed by a revised Procurement Policy Note for Steel (PPN) which was released in June. The PPN is part of a wider Government package aimed at increasing national security. It will require departments to explicitly consider UK-made steel for all public projects in the name of national security.
For the first time, with the DIS and the PPN in place, the MOD will be empowered to prioritise UK-based suppliers not only on cost, but also on the broader value they deliver in terms of national security, supply chain resilience, and regional economic growth.
UK Steel Director-General, Gareth Stace said:
“The Ministry of Defence is leading from the front. The Secretary of State for Defence has said that he wants UK steel to supply to UK defence projects. For too long, our producers have been overlooked for major defence contracts, despite our capability and quality. The Defence Secretary’s commitment in the DIS is a welcome endorsement of the strategic role of our sector.
“As global supply chains are pressured and geopolitical strains remain, the UK’s commitment to strategic sovereignty sends a powerful message. We look forward to working closely with the new Defence Industrial Joint Council to showcase our ability to scale up, innovate, and deliver the steel our armed forces need, produced right here in Britain.”
Notes to editors
The UK steel industry can supply steel for naval vessels, military vehicles, aerospace components, and key infrastructure - all of which are essential to modern defence platforms. With the UK investing heavily in next-generation military capabilities, these reforms are expected to unlock significant new demand for domestically sourced steel.
The revised Government Procurement Policy Note for Steel requires:
- Central government departments will be told to consider UK-made steel for all projects, and use exemptions for buying rules wherever possible to support steel makers, in new guidance issued today.
- Consult the UK Steel’s Digital Catalogue prior to design and procurement decisions being made. Include a contract clause which extends this obligation to Tier 1 contractors and their subcontractors (where relevant).
- Consider if the national security exemption in paragraph 25 of Schedule 2 to the Procurement Act 2023 is relevant to the procurement and apply as appropriate.
- Steel Procurement Taskforce final report, 2022: https://www.gov.uk/government/publications/steel-procurement-taskforce-final-report
Government is also bolstering British industry and business:
- British industries such as energy, steel and cyber are set to get more of the £400bn spent on Government procurement each year under new plans being considered to protect UK national security. The consultation, which closed on Friday 5 September, will consider new rules to give the government greater power to back our national security through government buying and ensure the country retains a strong, homegrown industrial base.
- New rules would also ensure the public sector excludes companies that have failed to pay small businesses on time.