Committee publication · Correspondence · 10 June 2025
Letter from NHS Supply Chain relating to the Industrial Strategy Inquiry, 4 June 2025
From: Business and Trade Committee
Inquiry: Industrial Strategy
Summary
NHS Supply Chain writes to the Business and Trade Committee following its appearance at the Industrial Strategy Inquiry. The letter outlines its role supplying over 1,100 UK suppliers (97% UK-registered, 36% SMEs) with 35 million products annually, claims £500 million in efficiency gains since January 2021, and requests government support for IT infrastructure modernisation, expanded procurement powers, and regulatory changes to accelerate innovation adoption across the NHS.
Key findings
- NHS Supply Chain currently supplies over 60% of NHS medical devices and consumables but reports this optionality limits long-term contracts that would attract UK investment and support innovation
- Infrastructure modernisation programme business case submitted; modernisation could unlock additional £500 million in efficiency savings over five years and address critical technology risks
- Dynamic Purchasing System for Innovation ('NHS Innovation Marketplace') has reduced time to adoption from six months to six weeks; five innovations entered NHS since February 2024
- Alignment needed between HM Treasury, DHSC, NHS England and NHS Supply Chain to shift procurement evaluation from unit cost to economic impact assessment to support domestic growth
- Requested policy changes include regulatory framework for medical devices, common domestic and international sustainability standards, and passporting mechanism to streamline innovation entry without repeated care setting trials
Tone
SupportiveTopics
Key actors
NHS Supply Chain, Liam Byrne MP, Business and Trade Select Committee, Department of Health and Social Care, HM Treasury, NHS England, Andrew New
Notable line
“Centralised procurement is vital to delivering the UK's Industrial Strategy. We supply over 60% of NHS medical devices and consumables as an option to NHS Healthcare providers, this optionality limits our ability to offer long-term contracts that attract UK investment and support innovation.”
Key Quotes
“Over 97% of our spend is with UK registered companies and over 36% with SMEs.”
“By the end of 2025, our work with NHS Trusts will have enabled over £500 million in efficiency gains compared to January”
“The current system is outdated, fragile, and no longer fit for the evolving needs of the NHS.”
“This "NHS Innovation Marketplace" reduces the time to adoption from over six months to just six weeks.”
“… a move to an evaluation of the economic impact of spend rather than the unit cost would support domestic growth.”
Source · parliament.uk record ↗