The UK government has released new public procurement guidance aimed at supporting British steel suppliers.

In the announcement released by the Department of Business, firms who wish to participate in public bidding processes must seek the best quality steel instead of the lowest purchase price.

The guidance applies to deals worth more than £10m with a “significant steel component”, and expects bidders to only purchase steel made to high environmental standards. According to the document, firms must take into consideration the “social impacts of competing suppliers”.

Matthew Hancock, chairman of the Steel Procurement Working Group, claims that "By asking procurers on major UK projects to consider social and environmental impacts, we are building a Britain that is happier, healthier and better off.

"We will always strive to get the best value for money for taxpayers and we are going to do so in a way that strengthens our economy and bolsters the long-term prosperity of people across the country.

"I don’t want contracts going abroad if the best bid is a British bid with all the social and economic benefits that brings."

For weekly news updates, subscribe to our email newsletter

Related: Wipro Named World’s Most Ethical Company