PUBLIC PROCUREMENT
CD: Could you outline the key factors that led to the enactment of the UK Procurement Act 2023?
Canning: The enactment of the UK’s Procurement Act 2023 stems from a need for greater transparency in, and a simplified process for, awarding public contracts in the UK. Passed by UK parliament in October 2023, the Act also aims to ensure that public authorities get value for money and that new entrants, such as small businesses and social enterprises, get greater access to procurement opportunities. Procuring work from public bodies also opens up significant revenue streams for businesses, as these bodies spend around £385bn between them every year. Once in effect, the government believes that the new Act will be beneficial to both contracting authorities and their bidders, while also allowing the government to ensure that taxpayer money is spent wisely, and that unscrupulous and underperforming suppliers are held to account.
Warner: The Act represents the biggest change to UK public procurement policy since 2015. This has largely been facilitated by Brexit, which provided the UK with an opportunity to recast the legislative framework. Essentially, the new system is meant to be simpler, more flexible, and better able to meet the specific needs of the UK’s public and private sectors, although transparency requirements embedded throughout the legislation could also give rise to a greater number of challenges and disputes. Though it was originally intended to come into force last autumn, the Act was delayed so that the newly elected Labour government could revise the National Procurement Policy Statement into one that “drives delivery of the Government’s missions”, particularly those relating to value for money, economic growth and social value. Stakeholders to any and all public procurements will also be required to pay due heed to these core objectives.
Apr-Jun 2025 issue
Gateley Legal