UK FACT CHECK POLITICS
UK FACT CHECK POLITICS
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From: Budget 2026 live: Latest updates, analysis and fact checks

Healey announces datacentre covenant, HMRC compliance push and 'British' supplier rule

The Chancellor, John Healey, has announced a 'British datacentre covenant', new funding for HMRC compliance work and a new definition of 'British' for suppliers bidding for public contracts.

Under the covenant, datacentres would have to invest locally and protect local water supplies. In return they would get faster grid connections and the right to generate their own electricity, according to the key points reported by The Guardian. City AM reports that tech firms must sign up to rules on local priorities before they can build datacentres.

The extra HMRC funding comes with stronger powers to collect overdue tax. The Guardian reports that these are aimed at people who "can clearly afford to pay but ignore repeated contact".

Healey also set out a new definition of 'British' for suppliers given preferential treatment in public procurement. The reports do not say how the new definition differs from current rules.

None of the reports gives a cost for any of the three measures or an estimate of how much the compliance funding would raise.

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