Weekly SME4Labour Small Business Briefing
Monday 28 September 2026 | Main reporting period: 21-27 September 2026
Labour using procurement and investment to support jobs and growth
This week’s briefing highlights a new government procurement package, practical work to help smaller employers retain staff with health conditions, new export and connectivity routes, and regional and industrial investment. The measures point towards a more active partnership between government, business and local leaders.
For SME4Labour, the test is practical delivery. Smaller firms need fair access to supply chains, clear information, proportionate requirements and prompt payment. This briefing distinguishes new policy announcements from delivery milestones, existing support and future opportunities.
1. Headline: Government extends jobs and skills expectations into major procurement
Status: policy direction announced on 27 September; detailed implementation and any legislation are still to follow.
The Government announced that utility companies, including electricity, gas and water networks, will be expected to use procurement to support UK jobs, apprenticeships and manufacturing skills. The announcement says legislation will be considered when parliamentary time allows if companies do not follow the Government’s lead.
The same package gives the National Shipbuilding Office oversight of future civil ship procurement and announces a new UK-built research vessel for the Centre for Environment, Fisheries and Aquaculture Science. The vessel competition will be open only to UK shipyards. A new Insourcing Unit will also examine critical central-government service contracts, alongside the recently announced Public Interest Test for most central-government service contracts worth more than £1 million.
Government announcement on measures to rewire the state, 27 September
What this means for SMEs — analysis: A clearer pipeline of utility, manufacturing and maritime demand could help specialist manufacturers, engineering firms, training providers and local supply-chain businesses plan and invest. However, the announcement does not create an SME quota, name individual contracts or set a timetable for utility implementation. The Insourcing Unit could also reduce some externally contracted work, so the effect on smaller service suppliers will depend on how the Public Interest Test is applied.
Practical action: Firms in relevant sectors should review utility and public-sector supplier portals, strengthen evidence on UK jobs and apprenticeships, and prepare for early market engagement. SME4Labour should press for contracts to be divided into manageable lots where appropriate, proportionate qualification requirements and prompt-payment obligations throughout supply chains.
2. Keep Britain Working moves towards SME testing through local partnerships
Status: implementation update published on 23 September; SME testing is developing, but this is not a new grant programme or a national entitlement.
The Department for Work and Pensions, Department for Business and Trade and Department of Health and Social Care published an update on the Keep Britain Working review. It sets out a proposed Workplace Health System intended to prevent avoidable job loss and help people with health conditions remain in work.
The update says the next phase will test return-to-work and stay-in-work tools with SMEs through mayoral and local partnerships. Liverpool City Region is already bringing employers, including SMEs, together to test return-to-work plans. Work in the West Midlands is examining how larger employers can widen SME access to workplace health support through procurement relationships. A pooled-buying model for occupational health services is also being explored for replication in West Yorkshire and the North East.
The document is explicit that this is not currently a major government spending programme. A phased national plan, including any limited public investment requirements, is expected to be developed ahead of the 2027 Spending Review.
Keep Britain Working implementation update, 23 September
What this means for SMEs — analysis: Smaller employers often lack in-house occupational health capacity. Pooled purchasing and practical return-to-work tools could make support more affordable and help firms retain experienced staff. The scale, geography, eligibility and cost of future provision remain uncertain.
Practical action: Employers should watch their combined authority or local partnership for pilot opportunities and review their existing sickness-absence, workplace-adjustment and return-to-work arrangements. SMEs can also identify where affordable shared occupational health support would make the greatest difference.
3. New UK–Philippines route for infrastructure exports
Status: government-to-government partnership signed on 23 September; no individual projects or UK supplier awards were announced.
The UK and the Philippines finalised a government-to-government infrastructure partnership. Priority Philippine projects can now be considered for UK Export Finance support, with up to £5 billion of UKEF capacity currently available for eligible activity in the market.
The partnership identifies opportunities in transport, clean energy, healthcare, water, digital infrastructure and advanced technology. The £5 billion figure is financing capacity, not a grant fund or a confirmed value of contracts.
UK–Philippines infrastructure partnership, 23 September
What this means for SMEs — analysis: Export-ready engineering, technology, professional-services and specialist supply-chain firms may be able to participate directly or through larger consortia. UKEF support can help viable projects manage finance and payment risk, but normal commercial, eligibility and procurement requirements will still apply.
Practical action: Relevant businesses should map their offer against the named sectors, identify potential delivery partners and contact UK Export Finance or the UK trade team for the Philippines before committing substantial bid costs.
4. Project Gigabit reports further delivery for harder-to-reach businesses
Status: delivery update published on 22 September; this is progress under an existing programme, not a new funding announcement.
The latest Project Gigabit update says gigabit-capable broadband was available to more than 88% of UK homes and businesses by January 2026. By March 2026, the programme had helped extend gigabit-capable coverage to 1.4 million premises, with more than £2 billion committed through signed contracts. The Government’s target is 99% coverage by 2032.
The next phase will continue using extensions to existing contracts and, where appropriate, new local procurements for smaller clusters of premises. The update also recognises that around four million premises remained without gigabit-capable coverage and that precise public-support requirements will change as commercial rollout plans develop.
Project Gigabit progress update, 22 September
What this means for SMEs — analysis: Reliable high-speed connectivity can improve online trading, cloud services, productivity and access to remote markets, especially for rural and hard-to-reach firms. Publication of a national coverage percentage does not mean every business can order a service immediately.
Practical action: Businesses with poor connectivity should use the official address checker, review local Project Gigabit contract pages and provide accurate evidence of unmet demand to their local authority or broadband delivery body.
5. Industrial investment strengthens UK supply-chain opportunities
Status: private investment and government support announced during the week; some public support remains subject to due diligence and final approval.
On 24 September, the Government welcomed Bentley’s completion of a £350 million investment at its Crewe plant for the company’s first fully electric vehicle. The announcement says the project supports around 4,000 existing jobs and brings automotive investment announced between 16 and 23 September by Bentley, McLaren and Nissan to £1.02 billion.
On 27 September, Geothermal Engineering Limited announced plans to invest around £43 million in a lithium extraction facility in Cornwall. The project has an offer in principle of nearly £10 million from the Government’s DRIVE35 Automotive Transformation Fund, subject to due diligence and final approval. The Government says it could create nearly 50 direct jobs and support around 80 more across the supply chain, with commercial production planned for 2029.
Bentley and UK automotive investment, 24 September | Cornwall lithium investment, 27 September
What this means for SMEs — analysis: Investment in electric vehicles, advanced manufacturing and critical minerals can create opportunities for specialist suppliers, maintenance firms, training providers and local services. The announcements do not identify guaranteed SME contract values, and the Cornwall public funding offer is not yet final.
Practical action: Manufacturing and engineering SMEs should monitor supplier-engagement activity from the project sponsors and relevant regional growth bodies, while ensuring quality, skills and net-zero credentials are ready for supply-chain assessment.
6. Greater Manchester publishes Warm Homes supplier appointments
Status: supplier-appointment decision taken on 11 September, published on 21 September and due to take effect on 29 September.
Greater Manchester Combined Authority published its decision to appoint four suppliers through its Net Zero Housing Retrofit Framework for project management and installation under the GM Warm Homes Local Grant. The listed awards total approximately £22.93 million across Compliance Specifics Ltd, Eco Approach Ltd, Seddon Construction Ltd and British Gas Social Housing Ltd trading as PH Jones.
The programme is intended to improve energy performance and low-carbon heating in eligible privately owned homes. Publication of the decision is a concrete procurement milestone, but it should not be read as evidence that a particular share of work has been awarded to SMEs.
Greater Manchester decisions published for 11-25 September | GMCA Net Zero Housing Retrofit Framework
What this means for SMEs — analysis: Retrofit programmes can create work for installers, surveyors, assessors and specialist suppliers, including through subcontracting. Opportunities will depend on the appointed suppliers’ delivery models and any further framework or local procurement activity.
Practical action: Qualified retrofit businesses should monitor GMCA and main-contractor supplier notices, check required accreditations and seek clarity on subcontracting, local-content and payment arrangements.
Important dates and practical actions
The following are live deadlines or implementation dates. Items first announced before this reporting week are included as practical reminders, not as new announcements.
| Date | Action | Why it matters |
|---|---|---|
| 29 September 2026, 11.59pm | Respond to the revised tipping code consultation | Hospitality employers and workers can comment on how the strengthened consultation requirements should work in practice. |
| 5 October 2026 | Register for Self Assessment if required for the 2025-26 tax year | New sole traders and others who meet the criteria should notify HMRC by the deadline. |
| 5 October 2026 | Update systems for lower DBS fees | Basic and Standard checks fall to £20, Enhanced checks to £41 and the Update Service to £15 a year. |
| 30 November 2026 | Respond to the modernising corporate reporting consultation | SMEs can help shape proposed thresholds, exemptions and digital reporting changes. |
SME4Labour perspective
Suggested quote for Ibrahim Dogus, Chair of SME4Labour — draft wording for approval, not a previously issued statement:
“This week shows the value of an active Labour government working with business and local leaders to turn national investment into jobs, skills and stronger supply chains.
“The next step must be to make sure small firms can participate. That means visible pipelines, proportionate procurement, affordable workplace support and prompt payment throughout every supply chain. SME4Labour will continue making the practical case for delivery that reaches businesses in every community.”
Priority for the week ahead
Secure practical SME access to the new procurement and industrial pipelines. SME4Labour should seek early engagement with utility companies, regional authorities and major project sponsors on contract visibility, lot sizes, supplier onboarding, apprenticeships and payment terms. The aim should be to turn strong national announcements into accessible opportunities for capable smaller firms.
About SME4Labour
SME4Labour is a Labour supporters’ group bringing together small and medium-sized businesses with Labour representatives, trade unions and policymakers. It is not affiliated to the Labour Party and is not a lobbying organisation.
Methodology: Primary sources were checked on 28 September 2026. The main selection covers 21-27 September. Older decisions or reminders are dated and labelled. SME implications and actions are analysis, not official promises. Funding capacity, offers in principle and investment announcements are not presented as confirmed SME contract awards.
For general information only; not legal, tax or financial advice. Businesses should confirm eligibility, deadlines and implementation arrangements directly before acting.