The new rule
Following the March 2026 "Growing British industry, jobs and skills" consultation outcome, government departments are for the first time required to confirm whether prime contractors are using UK-produced steel, or explain why they are not. This applies across major infrastructure, defence and construction contracts.
The knock-on effect for contractors
Prime contractors now need documented sourcing decisions, not verbal assurances. Subcontractors further down the chain should expect more detailed material-origin questions during procurement, and buyers who previously accepted a general assurance are now asking for traceable evidence.
Building a defensible sourcing position
The contractors handling this well are mapping their steel and key-material supply chains now, rather than waiting for a bid deadline to force the exercise. That means knowing exactly where material originates, what the fallback options are if UK supply is constrained, and how to document the "explain" case credibly if UK sourcing genuinely is not viable for a given contract.
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