Buying British: A thing of the past or a modern necessity?

17 February 2012

It is one of the most challenging decisions in public procurement today. Despite the rush to cut costs and seek out the cheapest option, should we instead look to buy British goods and services over potentially cheaper and higher quality offerings from overseas?

It’s a predicament that has surfaced many times over the years. Of the many initiatives imploring us to buy British goods, perhaps the most well-known was the I’m Backing Britain campaign of the 1960s, which began with a wave of patriotic fervour but fizzled out as the decade wore on.

These days, prioritising domestic goods rarely finds itself at the forefront of British people’s minds. This often stands in stark contrast to the actions of our continental cousins, where the attitude may still remain deeply ingrained in a national consciousness. In places the outlook can find itself prevailing at all levels: from the carefully-planned billions spent by governments right down to the choices of consumers in supermarket aisles.

Although we may have lost this tendency – if it ever truly existed – there are still signs that public opinion can be swayed by domestic interests, particularly if there are livelihoods at stake. Nothing illustrates this more than the drawn-out Bombardier debacle, in which the Derby-based train manufacturer was passed over in favour of German conglomerate Siemens for the £1.4bn Thameslink contract, a decision which ultimately placed thousands of British jobs in jeopardy.

Bombardier managed to emerge from the calamity relatively unscathed, but the continued survival of its plant is by no means assured. What was striking was how the public rallied to the stricken manufacturer’s cause, despite this being far from an isolated event in recent history. Bombardier is not the first British-based employer to be overlooked in favour of a foreign rival, and nor will it be the last, but the strength of the response will be a boon to those seeking to press forward with new measures to protect British industry.

Since the 1980s there has been a pronounced shift in attitudes, during which ministers have preferred to stand aside and allow the free market to conjure up solutions. Hand picking the winners was seen as old fashioned interventionism, but in the wake of the Bombardier issue there are signs that policy makers are taking a fresh look at our procurement policies. Philip Hammond, the former Transport Secretary, hit back in the aftermath of the Bombardier dispute:

“In the procurement we manage over coming years, I would expect us to take a much more proactive approach to engaging with the supply chain in advance of the competition to make sure that British companies, British based companies have the maximum possible chance of doing well and winning those competitions.”

His words struck a chord with many, but were marred by his government’s handling of the situation. Governments past and present have relied heavily on rhetoric about protecting British industry, but too often their words are completely at odds with their actions. It may seem interventionist – even xenophobic – to give favour to domestic companies, but the economic benefits of protecting British jobs could prove vital in a testing era.

Embracing the free market has left us with plenty of moral quandaries, but few are more pressing than the need to re-evaluate our purchasing affinities. It may bring back echoes of decades gone by, but as whisperings of “buy British” rise up again, it may be time to take notice.