This Procurement Policy Note (PPN) encourages contracting authorities to give greater consideration to national security and supply-chain resilience when planning procurements in four critical sectors: steel, shipbuilding, artificial intelligence (AI) and energy infrastructure.
The policy aims to strengthen supply-chain resilience and reduce strategic dependencies by giving national security greater consideration when central government plans and approaches relevant procurements.
For suppliers, this could affect how some contracts are designed and procured, including the use of specific procurement approaches or, where justified, the national security exemption under the Procurement Act 2023.
PPN 025 sets out how central government organisations should consider national security when procuring goods, works and services in four critical sectors: steel, shipbuilding, artificial intelligence (AI) and energy infrastructure.
The policy reflects a broader approach to national security that extends beyond defence to include critical infrastructure, supply chains and the UK’s long-term resilience.
The guidance emphasises the role procurement can play in improving supply-chain resilience, reducing dependencies and supporting national security objectives.
Contracting authorities (buyers) should identify relevant procurements in their pipelines and assess their national security implications. They are expected to engage early with the relevant Sector Lead* and consider supply-chain vulnerabilities, market concentration, dependency risks and the potential consequences of disruption.
Where there is a clear and evidence-based national security case, organisations can consider using the national security exemption under Schedule 2 of the Procurement Act 2023. However, this must be assessed case by case and consistently with applicable international trade agreements.
The guidance sets different definitions and thresholds for relevant procurements across the four sectors. These include:
PPN 025 does not introduce a single new requirement that applies to all suppliers. Its impact will depend largely on the sector, procurement and national security considerations involved.
For suppliers operating in the four critical sectors, however, procurement decisions may place greater emphasis on supply-chain resilience, security of supply, market dependencies and long-term capability.
In some circumstances, contracting authorities may also use procurement approaches that differ from a standard competitive procurement. Where the national security exemption is justified, parts of the Procurement Act’s usual requirements, including competition and transparency provisions, may be disapplied. The exemption does not apply automatically to procurements in the four sectors and must be justified on a case-by-case basis.
The guidance also emphasises early engagement with industry and the development of long-term procurement pipelines. For suppliers, this could provide opportunities to understand requirements earlier and engage with government as procurement plans develop.
This article provides a supplier-focused summary of PPN 025. The Government publications remain the authoritative source for the full requirements and guidance.
Official PPN: PPN 025: Protecting the UK’s National Security Through Public Procurement – GOV.UK
Guidance: Guidance to Procurement Policy Note 025: Protecting the UK’s National Security Through Public Procurement – GOV.UK
