Andy Burnham to scrap net zero rules for public contracts

Andy Burnham will scrap net zero requirements for public contracts in an effort to drive growth. The Government is planning to strip back onerous rules for taxpayer-funded procurement deals, including environmental requirements , to focus “ruthlessly” on jobs creation and skills, according to Louise Haigh, the First Secretary. Ms Haigh, Mr Burnham’s de facto deputy prime minister, said: “We are stripping back what’s known as social value to focus it ruthlessly on that priority. “For too long, [public] procurement has tried to tick too many boxes. If you prioritise everything, then you’re prioritising nothing.” The Government will make job creation and skills development the only social requirements for businesses competing for the UK’s £385bn public procurement contracts from January. This will mean ditching a lengthy list of demands that include a requirement that suppliers bidding for big government contracts must commit to achieving net zero emissions by 2050 and publish a carbon reduction plan outlining their plans to get there. Ms Haigh told the Financial Times that the current system included “a whole gamut of conditions around net zero, around the environment. There were things that I think a lot of businesses would have struggled to prove, like tackling domestic abuse and improving high streets. It became quite amorphous”. The new system will apply to contracts above £1m. Ms Haigh said the previous rules meant that some larger companies “could really game the system” while small and medium-sized companies were locked out by the complexity. As part of Mr Burnham’s push to focus on local growth, more points will be awarded to companies that create local, above-minimum-wage jobs and offer work experience. It is the latest example of net zero policies being sidelined under the new Prime Minister’s Government. Mr Burnham has said he will take a “pragmatic” approach toward drilling for oil and gas in the North Sea, putting him at odds with Ed Miliband, the Foreign Secretary. During his time as energy secretary, Mr Miliband dithered over approving new licences and called BP’s profits “morally and economically wrong” . Sir Tony Blair attacked net zero policies under Sir Keir Starmer’s government earlier this year. The former prime minister said it was wrong that people were “being asked to make financial sacrifices and changes in lifestyle when they know that their impact on global emissions is minimal”. His language echoed that of Kemi Badenoch, the Conservative leader, who said last month that reaching net zero by 2050 was “impossible”.