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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.
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."
