Industry leaders have expressed concerns over the UK government’s recent emphasis on promoting “buying British” within public procurement, urging policymakers to prioritize broader economic challenges such as high taxes, energy expenses, and regulatory burdens.

Chancellor John Healey, in a recent interview, pledged a more forceful approach to ensuring that government departments prioritize domestic suppliers. He stated that public spending would be deliberately directed to support British jobs, apprenticeships, and skills development. Public procurement accounts for approximately one-third of government expenditures, representing close to £400 billion in spending last year.

However, business owners across several sectors criticized the initiative as insufficient to address the systemic hurdles facing their industries. Ian Hodgkinson, a bricklayer and construction firm owner, highlighted the industry's significant £140 billion economic contribution but said the “buying British” drive does not address key issues restricting growth. He called for the elimination of VAT on home extensions and improvements, which he described as a major obstacle for the construction sector.

In the hospitality sector, which contributes nearly £93 billion to the economy and employs around three million people, operators are also calling for urgent fiscal relief. Lynsey Smith, proprietor of The Saracens Head pub and restaurant in Ormskirk, Lancashire, emphasized that while sourcing British produce is a priority for her business, reducing VAT on hospitality services from the current 20 percent rate to 10 percent would have a far greater impact on profitability. She dismissed recent reductions in business rates, such as a 20 percent cut announced by Greater Manchester Mayor Andy Burnham for pubs and live music venues, as offering minimal relief compared to VAT savings.

The hospitality industry is further concerned about proposed “holiday tax” measures that would allow local authorities to impose additional levies on domestic tourism. Burnham has already introduced such a tax in Manchester. Allen Simpson, chief executive of UK Hospitality, warned that applying VAT on top of the tourism tax would effectively increase the tax burden on British holidays to 27 percent, potentially harming restaurants and hotels by making domestic travel more expensive compared to overseas options.

Other entrepreneurs echoed calls for the government to focus on reducing business rates, curbing energy costs, and easing regulatory constraints, arguing these steps would provide tangible support to British industries struggling to maintain competitiveness. Critics suggest that the government’s procurement strategy, while well-intentioned, risks being perceived as symbolic without meaningful economic reforms to address the underlying cost pressures firms face.