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Government announces four month delay to new procurement rules to boost small business access to public sector contracts

Government announces four month delay to new procurement rules to boost small business access to public sector contracts
Dan Martin
Dan MartinDan Martin Content & Events

Posted: Thu 12th Sep 2024

The introduction of changes to public sector procurement aimed at increasing the number of small businesses winnning contracts has been delayed from 28 October until 25 February 2025.

Passed by the previous Conservative government, the Procurement Act 2023 establishes a new public procurement regime which ministers said will be a "simpler and more transparent system that delivers better value for money, reducing costs for business and the public sector".

One key aim is helping small and medium sized businesses win a greater share of the £300bn spent on public sector contracts each year by tackling the red tape and other hurdles they currently need to deal with.

The changes, including a new supplier registration system so suppliers only need to sign up once rather than multiple times as is currently the case, were due to come into force on 28 October. However, the new government has today announced that the implementation of the Act will now be delayed by four months until 25 February 2025.

In a written statement, Georgia Gould, Cabinet Office parliamentary secretary, said:

Under the Act, the previous administration published a National Procurement Policy Statement to which contracting authorities will have to have regard. But this Statement does not meet the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value.

"I have therefore taken the decision to begin the vital work of producing a new National Procurement Policy Statement that clearly sets out this government's priorities for public procurement in support of our missions.

"It is crucial that the new regime in the Procurement Act goes live with a bold and ambitious Statement that drives delivery of the government's missions, and therefore, I am proposing a short delay to the commencement of the Act to February 2025 so this work can be completed.

"I am confident that the extra time to prepare will allow for a more seamless transition, ensuring a smoother and more effective implementation process for both contracting authorities and suppliers."

Relevant resources

Dan Martin
Dan MartinDan Martin Content & Events
I'm a freelance content creator and event host who helps small businesses and the organisations that support them. I'm also Enterprise Nation's Local Leader for Bristol. I have 20 years of experience as a small business journalist having interviewed hundreds of entrepreneurs from famous names like Sir Richard Branson and Deborah Meaden to the founders behind brand new start-ups. I've worked for a range of leading small business publications and support groups, most recently as head of content at Enterprise Nation where I was responsible for the prolific output of content on the company's blog and social media. I now freelance for Enterprise Nation as the website's news reporter and as the host of the Small Business sessions podcast. I'm based in Bristol where I run and host regular events with the local small business community in my role as Enterprise Nation's Local Leader for Bristol. I also have strong connections with other major business organisations in the south west region. In total, I've hosted over 100 events including conferences with an audience of hundreds for international brands like Xero and Facebook and live web chats from inside 10 Downing Street. With my partner, I co-run Lifestyle District, a lifestyle blog focused on culture, art, theatre and photography.

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