New laws ‘putting growth, small businesses, and transparency, at the heart of public contract awards’ are now in force as part of ‘a transformation’ of the government’s commercial landscape that delivers on the Plan for Change.
The Cabinet Office says that ‘a more open public procurement regime driving value for money’ is now in place through the Procurement Act 2023, which sets rules that all public bodies must follow when they buy goods and services. The Cabinet Office said: “The Act will boost growth by slashing red tape for small and medium-sized businesses applying for government contracts – combining multiple regulations into one simple set, and publishing procurement data in a standard, open format on a Central Digital Platform.”
It is bolstered by a new National Procurement Policy Statement (NPPS) that sets out this government’s ‘mission-led priorities, ‘which the public sector must have regard to in its procurement activity’.
The Cabinet Office says ‘the changes open up opportunities for small businesses to bid for public sector contracts, helping deliver growth and opportunity across the UK’. The legislation is also intended to ‘end late payments that put small businesses at risk’, introducing a mandate of 30-day payment terms for all public sector contracts.
The Cabinet Office adds that ‘costs for both business and the public sector will be reduced through simple new processes that drive innovation, offering greater flexibility for buyers to tailor procurement to their exact needs’ – for example, providing public bodies with more opportunities to negotiate with suppliers, and using built-in stages to procurement cycles such as demonstrations and testing prototypes.
Cabinet Office Minister, Georgia Gould (pictured), said: “Public sector procurement can now fully deliver on the Plan for Change – unleashing local growth, opening up opportunities, and embedding transparency and accountability. The Procurement Act, supported by our new National Procurement Policy Statement, will tear down barriers that stop small businesses from winning government work, giving them greater opportunity to access the £400 billion spent on public procurement every year, investing in home-grown talent and driving innovation and growth.”
Shirley Cooper, Crown Representative for Small Businesses, said: “This once–in-a-generation change to public procurement laws will provide enormous opportunities for small businesses to take a greater share of contracts.”
The Government says it will also use ‘tough new powers’ to investigate supplier misconduct – including underperforming suppliers and those that pose security risks to supply chains, with the ability to debar or exclude them from contracts.
