The Procurement Act 2023 is set to bring transformative changes to public procurement in the UK, with new regulations going live in October 2024. As businesses prepare for this significant shift, understanding the new regime’s implications is essential for ensuring compliance and seizing emerging opportunities. This guide outlines the key aspects of the Procurement Act 2023, its benefits, and how suppliers can prepare for its implementation.
What is the Procurement Act 2023?
The Procurement Act 2023 is designed to modernise how the public sector procures goods and services, introducing streamlined processes and improving access to procurement opportunities. Secondary legislation was finalised in June 2024, setting the stage for its adoption in October.
For businesses, this represents a pivotal moment to align their operations with the upcoming regulations. Current contracts will continue under the existing framework, but all new procurements initiated after October 2024 will adhere to the new rules.
Benefits of the Procurement Act for Suppliers
The Procurement Act 2023 aims to make public procurement simpler and more inclusive for all suppliers. Businesses will benefit from a centralised system to register their details, eliminating repetitive tasks and streamlining bid submissions.
The new framework will offer greater visibility into procurement opportunities, enabling suppliers to explore below-threshold contracts and access better insights into engagement events and tender plans. Measures to reduce barriers for small and medium-sized enterprises (SMEs) and voluntary, community, and social enterprises (VCSEs) will also foster fairer competition.
Suppliers can also expect improvements in payment terms, with a guarantee of 30-day payment periods on a broader range of public sector contracts. Over time, these changes are intended to break down barriers to entry, helping businesses of all sizes succeed in public procurement.
Preparing for the Procurement Act 2023
Businesses must be proactive in adapting to the Procurement Act 2023 to stay competitive. To prepare, it is essential to familiarise your team with the new regulations by reviewing guidance materials, attending industry events, and engaging in training programs provided by organisations like RISQS and the Cabinet Office.
Online resources, such as the Transforming Public Procurement webpage, provide comprehensive information about the Act’s implementation. Knowledge Drop videos, specifically tailored for SMEs and VCSEs, offer insights into how the changes will unfold and how businesses can position themselves effectively.
October 2024 will mark a significant shift for buyers and suppliers alike, with a focus on transparency, efficiency, and inclusivity. Businesses that act now to align with the new rules will be better equipped to thrive under the new regime.
How the New Regulations Impact Buyers and Suppliers
The Procurement Act 2023 introduces substantial improvements across key areas of public procurement:
- Centralised Registration: Suppliers will store their core business details in one place for reuse across bids.
- Expanded Access: Opportunities for below-threshold contracts will be more visible, creating new avenues for businesses.
- Framework Flexibility: New competitive frameworks will ensure suppliers are not excluded for long periods.
- SME and VCSE Support: Specific measures will help small and social enterprises compete on a level playing field.
- Stronger Exclusions Framework: Stricter rules will ensure underperforming suppliers are appropriately managed
Key Changes Introduced by the Procurement Act 2023
The following table highlights the main differences between the old framework and the new procurement regime:
| Feature | Current Framework | New Procurement Act 2023 |
|---|---|---|
| Business Registration | Repeated for each procurement bid | Centralised registration for reuse |
| Access to Opportunities | Limited, scattered across platforms | Centralised on a single platform |
| Framework Duration | Rigid and long-term exclusions | Flexible, allowing dynamic engagement |
| Support for SMEs and VCSEs | Minimal and inconsistent | Proactive measures to reduce barriers |
| Payment Terms | Variable across contracts | 30-day standard payment terms |
| Transparency | Limited visibility into tender details | Full visibility, including contracts >£5M |
| Accountability | Weak exclusions framework | Robust system to manage underperformers |
This table encapsulates how the new framework enhances efficiency, accessibility, and fairness, fostering a more inclusive procurement environment.
Procurement Act – Knowledge Drop Video
If you haven’t already, we strongly recommend you watch the ‘Knowledge Drop’ videos, which have dedicated versions designed specifically for suppliers, including SME and VCSE suppliers. These will give you a broader understanding of the changes that will be coming.
These changes will impact all buyers and Suppliers of goods and services in the UK. Please ensure you are familiar with the changes and how to position your business for their implementation later this year.
FAQs About the Procurement Act 2023
The Act aims to modernise public procurement by making it more transparent, efficient, and inclusive. It introduces streamlined processes to benefit both buyers and suppliers.
The new regulations will go live in October 2024, following the completion of secondary legislation.
Specific provisions aim to reduce barriers faced by SMEs, allowing them to compete more effectively for public sector contracts. These include simplified bidding processes and improved access to opportunities.
Knowledge Drop videos are educational resources provided by the Cabinet Office to help suppliers, including SMEs and VCSEs, understand the new procurement framework. These videos offer practical advice for preparing for the changes.
Suppliers will no longer need to repeatedly provide their business details for each bid, saving time and effort while enhancing consistency across applications.
A single platform will host all procurement opportunities, making it easier for suppliers to find and monitor relevant tenders. This transparency will also extend to the details of larger contracts above £5 million.
The Act ensures 30-day payment terms across a wider range of public sector contracts, benefiting smaller businesses by improving cash flow.
Flexible frameworks allow suppliers to engage with the public sector dynamically, reducing long-term exclusion and creating new opportunities.
A stricter exclusions framework will ensure that poorly performing suppliers face appropriate consequences, protecting the integrity of public contracts.
SMEs will benefit from fairer competition and increased access to below-threshold contracts and engagement events.
The Cabinet Office’s Transforming Public Procurement webpage and Knowledge Drop videos are excellent starting points.
For more details on procurement, you can explore the Wikipedia page on procurement, which provides an overview of the topic.
This article was written by Mathew Oldham (HSQE Consultancy Ltd). Mathew has over 20 years of experience in health and safety and an MSc (Hons) in Construction Management. Mathew is NEBOSH Health and Safety, Construction, Fire, Environment and Diploma qualified and CertIOSH.