In the next five years, around £300 billion is set to be spent on major UK infrastructure projects.
The two new initiatives will support a steel suppliers' ability to compete with international suppliers for major government and public sector contracts.
Already, steel procurement guidelines are in place ruling all central government departments must consider the 'social and economic impact' of the steel they source across all major projects.
These guidelines have now been extended, meaning that the public sector will now be required to also adopt these reforms introduced by central Government.
In addition, contractors working for the public sector will also be required to advertise their requirements for steel so that UK firms can compete.
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The new measures are in response to protecting the UK steel industry, which has been hit by a series of plant closures and redundancies due to cheap imports from China.
Matt Hancock, Minister for the Cabinet Office and Paymaster General, said: "We are going further than ever before to support British steel. Taxpayers spend billions of pounds buying steel for public projects. Last year we changed the rules across all central government procurement to ensure buyers take into account the true value of British steel – including local impact and jobs.
"The industry is responding positively to this so I want to go further. Now we will apply this guidance across the public sector so that, from operating theatres to new buildings, public sector buyers will need to consider social and economic benefits, alongside value for money. When public bodies buy steel they must take account of the true value of buying British."
Business Secretary Sajid Javid added: "I am determined to make sure we do all we can to secure a sustainable future for UK steel and find a viable solution that supports the workers and wider community.
"By changing the procurement rules on these major infrastructure projects we are backing the future of UK steel – opening up significant opportunities for UK suppliers and allowing them to compete more effectively with international companies."
(LM/MH)
