Lawsons Group Urges Government to Mandate Fair Tax Mark for Public Sector Construction Contracts
Lawsons Group, the largest independent builders’ merchant in London and the South East, has urged the UK government to require Fair Tax Mark accreditation for all companies bidding on public sector construction and housebuilding contracts.
The appeal coincides with Lawsons securing reaccreditation for the Fair Tax Mark, an independent certification that recognises organisations committed to transparent and responsible tax practices within the UK. The company, which has an annual turnover of £180 million, emphasises the importance of fair tax conduct in public procurement.
Public contracts in the UK represent a significant expenditure, with over £340 billion spent annually. However, research by the Fair Tax Foundation reveals that between 2014 and 2019, companies linked to tax havens were awarded 17.5% of the value of public contracts, amounting to approximately £37.5 billion. This situation places independent UK tax-paying businesses at a competitive disadvantage against larger firms with complex ownership and tax structures, despite these contracts being funded by UK taxpayers.
The Fair Tax Mark accreditation is independently verified and publicly accessible. Collectively, accredited businesses contribute more than £4.1 billion annually in corporate tax worldwide. Meanwhile, the UK is estimated to lose around £14 billion each year due to profit shifting. Lawsons argues that mandating Fair Tax Mark accreditation in public procurement would establish a clear standard for responsible tax behaviour.
The call for reform emerges amid growing consolidation in the UK construction supply chain. In 2024, mergers and acquisitions activity in UK building products and services increased by 30%, with over 405 private-equity-backed platforms currently operating in the market. Lawsons highlights that this trend intensifies pressure on independent merchants, many of whom continue to reinvest locally, support regional employment, and maintain long-term supplier relationships within their communities.
Chris Harrison, Group Finance Director at Lawsons, stated: “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 at the 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.”
By adopting Fair Tax Mark accreditation as a mandatory requirement for public sector construction contracts, the government could reinforce the principle that public funds should support businesses that contribute transparently and fairly to the UK economy. This measure would not only enhance competition but also strengthen the communities served by these projects.
Background: The Fair Tax Mark was established to promote transparency and fairness in corporate tax practices, encouraging companies to pay the right amount of tax in the right place at the right time. Its accreditation process involves rigorous assessment of a company’s tax policies and payments, providing assurance to stakeholders and the public. The construction sector, with its substantial public procurement spend, represents a critical area where responsible tax behaviour can have significant economic and social impact.
