Public sector contracts awarded to firms backed by private equity reached over £31 billion in the past year, according to recent research. Nearly half of this spending was directed toward private equity companies headquartered offshore, the trade union GMB reported.

The findings emerged amid ongoing debate about the allocation of government contracts and the impact on the domestic economy. GMB emphasized the importance of prioritizing UK-based companies for public sector contracts and supply chain opportunities.

Gary Smith, general secretary of GMB, addressed the issue during the Labour Party Conference in Liverpool. He pointed out that despite Labour’s election pledges to revitalize Britain’s economy by increasing domestic production and procurement, challenges remain. "Labour was elected on a promise to fix a broken Britain. To make, buy and sell more at home, but, things are still broken," Smith stated.

The data shed light on concerns that a significant proportion of public funds are benefiting firms outside the United Kingdom, raising questions about the broader economic implications and the government's commitment to supporting local businesses. Officials and industry stakeholders have yet to comment on the report’s findings or suggest potential policy responses.

The use of offshore private equity firms in managing public contracts has been a contentious issue, with ongoing discussions about transparency, accountability, and the economic impact on UK-based suppliers. The research underscores the continuing debate over the balance between global investment and domestic economic priorities in government procurement.