The implementation of the Procurement Act 2023 has been postponed to February 2025, aiming to accommodate the drafting of a new National Procurement Policy Statement (NPPS).
- The Act, designed to reform UK public procurement by simplifying procedures and enhancing SME involvement, had its initial regulations laid in March 2024.
- Cabinet Office parliamentary secretary Georgia Gould highlighted the necessity for a comprehensive NPPS that aligns with the government’s procurement goals.
- Procurement experts believe the delay grants essential preparation time to ensure a seamless transition into the new regime.
- Concerns remain about how the deferment impacts the overarching objectives to improve transparency and accountability.
The delayed implementation of the Procurement Act 2023 to February 2025 provides the government additional time to develop a new National Procurement Policy Statement (NPPS). Initially receiving royal assent in October 2023, the Act was set to overhaul public procurement law by streamlining processes and increasing public sector opportunities for small and medium-sized enterprises (SMEs). However, the drafting of a new NPPS has necessitated this extension.
Georgia Gould, Cabinet Office parliamentary secretary, addressed parliament with the rationale behind the delay stating, “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.” The emphasis is on ensuring the new NPPS supports the government’s strategic missions effectively before the Act goes live.
Experts in the procurement sector have welcomed the postponement, underscoring the need for more time to adequately prepare for the impending changes. A spokesperson from Pagabo, a Hull-based procurement consultancy, noted the potential of the NPPS to address challenges such as delivering value for money and social value. They mentioned that this delay, although postponing some objectives, provides a window for organisations to familiarise themselves with the forthcoming procedural and policy adjustments.
Despite the benefits seen in preparation, there is a concern among some stakeholders about the delay potentially hindering the progress aimed at enhancing transparency and accountability in public procurement. Clare Tetlow of Procure Plus pointed out that the deferment was somewhat anticipated due to changes within the government. She reflected on the focus on ensuring companies associated with past injustices do not continuously receive public contracts.
The postponement allows for thorough preparation but raises questions about the delay’s impact on achieving procurement reform goals.
