The independent builders' merchant says taxpayer-funded projects should prioritise businesses that pay tax transparently in the UK as sector consolidation accelerates.
Lawsons Group has called on the government to introduce Fair Tax Mark accreditation as a requirement for all companies bidding on public sector construction and housebuilding contracts.
The call comes as the £180-million-turnover business secures reaccreditation with the Fair Tax Mark, an independent certification recognising organisations committed to transparent and responsible UK tax practices.
Lawsons says it wants to highlights what it sees as a fundamental problem in public procurement: Today, more than £340 billion is spent annually on public contracts in the UK, yet Fair Tax Foundation research found that companies linked to tax havens secured 17.5% of the value of public contracts awarded between 2014 and 2019, equivalent to £37.5 billion over the period. Independent UK tax-paying businesses compete directly against larger rivals operating under more complex ownership and tax structures, despite contracts ultimately being funded by UK taxpayers.
Fair Tax Mark accreditation is independently verified and publicly available. With accredited businesses collectively contributing more than £4.1 billion annually in corporate tax worldwide, and the UK losing an estimated £14 billion annually to profit shifting, mandating Fair Tax Mark accreditation in public procurement would provide a clear benchmark for responsible tax conduct.
The company sees the issue being exacerbated by increasing consolidation across the UK construction supply chain. UK building products and services M&A activity rose 30% in 2024, with more than 405 private-equity-backed platforms now operating across the market. Lawsons said the trend is placing growing pressure on independent merchants, despite many continuing to reinvest locally, support regional employment and maintain long-term supplier relationships within the communities they serve.
Chris Harrison, Group Finance Director at Lawsons, said: "Independent businesses that reinvest locally, employ locally and pay full UK tax should never be commercially disadvantaged in public procurement. If a company is benefiting from taxpayer-funded construction projects, there is a strong case for demonstrating transparent and responsible UK tax practices.
"Public procurement of construction materials has enormous power to shape the market. It should only ever support businesses contributing directly back into the UK economy and supply chain."
Jaime Boswell, Head of Accreditation, Fair Tax Foundation, added: "Lawsons is right to raise this issue. Public contracts are funded by taxpayers, so businesses benefiting from them should be able to show that they act responsibly, transparently and contribute fairly to the communities and services we all rely on. Fair Tax Mark accreditation gives procurers a clear, independent way to recognise that commitment."
Fair Tax Mark accreditation offers a benchmark that the government can implement. Requiring it for public sector construction contracts, the government would send a clear message: public money should support businesses that contribute transparently and fairly to the UK economy, strengthening both competition and the communities these projects serve.
