Re-industrialisation and the UK’s rail supply chain

The Burnham Government has reiterated its commitment to “re‑industrialising Britain” through public procurement, a stance first articulated by Prime Minister Andy Burnham in his inaugural speech outside No 10 and later in Manchester. In July, Burnham announced that all eligible public contracts would be subject to social‑value weighting to give British‑based companies a better chance of winning contracts, citing the need to safeguard sovereign manufacturing in critical sectors such as steel, defence, energy, food and farming.

In September, the Department for Transport announced that Alstom had won the contract to supply TransPennine Express with 29 new Electric Battery Multiple Units. The DfT press release highlighted that the contract would “transform railways and re‑industrialise Britain.” The Transport Secretary’s remarks at Derby’s Litchurch Lane praised the securing of the iconic factory and noted that Great British Railways (GBR) would become one of Alstom’s largest customers worldwide, underscoring the government’s support for British industry and jobs.

The Procurement Act 2023 now allows public bodies to consider wider community benefits, including social value and place‑based localism, alongside cost when awarding contracts. Network Rail, DfT Operator Limited TOCs, and the forthcoming GBR are all subject to this legislation, providing a framework for the government’s re‑industrialisation agenda.

Early summer saw the Rail Forum publish “Rail Manufacturing: An Engine for Growth,” a document from its Manufacturing Steering Group proposing modest policy changes to boost private‑sector investment, skills development, and sustainable growth in the rail manufacturing sector. Invitations from several departments to discuss these proposals have been issued, signalling a renewed willingness of Whitehall to engage with the rail supply chain as part of a broader strategy to secure the industry’s future and support the UK economy.