UK Chancellor Rachel Reeves has urged cabinet ministers to prioritize British companies in government contracts across critical sectors. The directive, co-signed by Cabinet Office minister Chris Ward, targets AI, energy infrastructure, shipbuilding, and steel procurement. Reeves emphasized this approach supports British businesses and creates skilled jobs, expressing disappointment that "too many" contracts currently go overseas despite being "in the wider national interest."

The push comes as Reeves attempts to maintain favor within Labour amid challenges to Sir Keir Starmer's premiership. The government will designate these sectors as "critical for national security," potentially overriding previous Conservative rules preventing discrimination against non-British suppliers. Recent tensions include the government's blocking of Chinese turbine maker Ming Yang on national security grounds after accusations of "politicisation."

This policy shift follows the UK's full acquisition of British Steel from Chinese group Jingye earlier this month. While security concerns drive the approach, proponents note potential cost benefits from international competition. The move reflects growing scrutiny of Chinese investments in British infrastructure, with companies like Octopus Energy previously advocating for Chinese wind turbine technology due to cost advantages amid the global energy crisis.