LONDON — The UK government is encouraging the National Health Service (NHS) and the Ministry of Defence (MoD) to prioritise British technology firms as part of a broader strategy to support domestic innovation and economic growth amid global uncertainty and rising inflation pressures. The move was outlined by Treasury Minister Spencer Livermore, who said government procurement should act as a catalyst for British tech sectors, particularly in artificial intelligence (AI) and advanced systems.
In a major announcement on 14 March 2026, Livermore said that government budgets will be used more strategically to back “homegrown tech firms” that are often overlooked by traditional procurement processes, which can be slow and bureaucratic. To address this, the government plans to launch a rapid innovation procurement taskforce to accelerate how new technologies are bought by public services, starting with health and defence.
The Treasury’s approach is part of Chancellor Rachel Reeves’s broader economic strategy, aimed at bolstering growth at a time when geopolitical tensions — notably the ongoing Middle East crisis — have driven up oil prices and created economic headwinds. Reeves’s plan emphasises closer cooperation with the European Union, investment in key innovation corridors like the Oxford‑Cambridge axis, and greater adoption of AI across public services and industry.
The Guardian reported that Reeves and her team believe that tapping into Britain’s tech capabilities on a larger scale could help create jobs across sectors and make the economy more resilient. Encouraging public bodies like the NHS and MoD to buy domestic technology is seen as a way to give fledgling companies a stable first customer and help them scale up to compete globally.
Industry analysts say the government’s proposals reflect a wider trend in UK policy toward using public procurement as a lever for economic growth — linking government spending to innovation outcomes, jobs and strategic capability. By prioritising domestic suppliers, ministers hope to support AI development and strengthen national tech supply chainsat a time when other global powers are also ramping up investment in similar technologies.