UK Businesses Urged to Prioritize Diversity and Net Zero to Secure Government Contracts

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New procurement guidelines from the government have advised businesses to align with net zero and diversity objectives if they wish to secure public contracts. However, critics argue that these policies prioritize ideology over economic efficiency, calling them examples of "eco-zealotry" and "woke virtue signaling."  

 

The recently published guide encourages firms bidding for government work to demonstrate their contributions to Sir Keir Starmer’s “five missions” and their commitment to delivering “social value.” Companies are expected to outline how they will enhance “community cohesion,” eliminate barriers for underrepresented groups and young people, and support the transition to net zero when executing government projects. Additionally, businesses must show efforts toward “creating opportunities in areas of deprivation” and upholding the “highest standards” of “environmental sustainability.”  

 

The updated National Procurement Policy Statement replaces a previous guide developed under the Conservative government as part of the Procurement Act 2023. Unlike the new guidelines, the prior version did not reference net zero and discouraged excessive diversity reporting requirements for companies competing for public contracts. The new directive also encourages government departments to allocate more resources to charities and NGOs in an effort to enhance "social value."  

 

Critics argue that these changes undermine financial prudence. Sir Jacob Rees-Mogg, former business secretary, remarked, “The intention of the Procurement Act 2023 was to maximize value for money for taxpayers. When the public finances are under such strain, trying to use it for woke virtue signaling is especially foolish and potentially unlawful.”  

 

Echoing these concerns, Andrew Bowie, shadow Scottish secretary, criticized the move, stating, “It seems this government is more concerned with their eco-zealotry than delivering value for money for the taxpayer. By enforcing these mad targets on companies, the British public will face higher bills and worse services—just to fuel Ed Miliband’s own ego and ideology. After their disastrous Budget, the Government should be prioritizing value for money over eco-zealotry rather than taking another step in the wrong direction and lumbering costs on taxpayers.”  

 

Lord Kempsell, founder of the anti-waste organization UK DOGE, warned that the new procurement rules could lead to unnecessary red tape, potentially delaying essential projects. “It may be well-intentioned, but this kind of overly bureaucratic layering will slow down vital procurement and just backfire. It shows why we need UK DOGE right now—the crack team is ready to go, Labour should call us at once.”  

 

The Conservative government had reformed procurement in 2023 through the Procurement Act, aiming to simplify and increase transparency in the process. The introduction of these new guidelines, however, has reignited debate over whether government contracting should focus on broader social and environmental objectives or remain strictly centered on financial efficiency and value for taxpayers.

 

Based on a report by Daily Telegraph 2025-02-25