A more open public procurement regime driving value for money is now in place through the Procurement Act 2023, setting rules that all public bodies must follow when they buy goods and services.
The Act will boost growth by slashing red tape for SMEs 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.
The changes open up opportunities for small businesses to bid for public sector contracts, helping deliver growth and opportunity across the UK. It ends late payments that put small businesses at risk, introducing a mandate of 30-day payment terms for all public sector contracts.
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 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 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 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 change to public procurement laws will provide enormous opportunities for small businesses to take a greater share of contracts. The Act, which goes live alongside our bold new National Procurement Policy Statement, will drive economic growth and deliver on the Government’s Missions and the Plan for Change.”
