Geopolitics is becoming an increasingly important factor in government negotiations.

The relatively predictable global environment of recent decades is giving way to greater uncertainty. Trade relationships are changing, protectionism is increasing, supply chains are vulnerable and governments are reconsidering their reliance on overseas suppliers and traditional allies.

In this episode of Negotiating Government, David Gauke is joined by Sir William Patey, former British Ambassador to Afghanistan, Saudi Arabia, Iraq and Sudan, to explore what this changing geopolitical landscape means for businesses working with government.

They look at the growing emphasis on Buy British, economic security and domestic industrial capability, and why businesses can no longer assume that winning a government contract is simply about providing the best product at the lowest price.

David and William discuss:

• How the shift from a relatively stable global order is changing UK government decision-making
• Why Buy British and economic security are becoming more important in public procurement
• How security of supply can become a competitive advantage in government negotiations
• What changing relationships with the US and Europe mean for defence procurement
• Why government may increasingly support domestic industrial and technological capability
• How geopolitical choke points, critical minerals and semiconductor supply create new risks
• The growing importance of energy security to UK economic and industrial policy
• How government will balance net zero, energy costs and the demands of AI and new technology
• Why geopolitical disruption can suddenly affect industries that previously appeared relatively insulated
• What businesses should do differently when preparing to negotiate with government

The central lesson is that businesses need to understand the pressures facing government before entering a negotiation.

Competitive pricing and a strong product remain essential, but increasingly they are only the starting point. Businesses that can demonstrate how their proposition supports resilience, security of supply, UK capability or another strategic government priority may be able to create negotiating advantages that go well beyond price.

Note: this podcast was recorded before the recent change of Prime Minister.

About the Podcast

Negotient is the expert adviser in managing negotiations between the public and private sectors; we advise clients in both sectors how to get the best results from their negotiations. This podcast explores the strategies and behind-the-scenes mechanics that shape successful negotiations, and the factors that drive the interests of both sides. Our aim is to help those involved in public sector negotiations understand the challenges they face — and how to overcome them to deliver better results for the public.