Changes and opportunities for suppliers to the public sector: The Procurement Act 2023, coming into place on 24 February 2025, is expected to improve the supply of goods, services, and works within the public sector
With updates to the procurement process, the new law is designed to streamline procedures, increase transparency, and open up more opportunities for suppliers of all sizes, including Small and Medium Enterprises (SMEs) and Voluntary, Community, and Social Enterprises (VCSEs).
Accessible bidding process
One of the key goals of the Procurement Act 2023 is to simplify the way businesses engage with the public sector.
The new law hopes to get rid of complex barriers that can often discourage smaller businesses from bidding on public contracts. It introduces a more flexible and transparent bidding process, making it easier for suppliers to enter the market and compete for contracts.
The Act will offer a new “competitive flexible” procedure, which enhances negotiation and partnership opportunities between suppliers and contracting authorities.
The new framework also promises to make it easier for suppliers to access and navigate commercial frameworks. Doing so ensures that businesses aren’t excluded from bidding for contracts for extended periods, ultimately providing more chances for all suppliers to win public sector work.
Better financial stability for suppliers
Improved cash flow and financial stability are central to the changes under the Procurement Act 2023. The Act strengthens payment terms for suppliers by mandating quicker payments throughout the supply chain.
It extends 30-day payment terms to more types of public sector contracts, helping businesses maintain smoother cash flow and reduce financial pressure when working with government bodies.
Central Digital Platform for Easier Access
Another important update under the Act is the introduction of a Central Digital Platform (CDP), which will replace the existing Find a Tender service.
The new platform is designed to be easier to use, allowing suppliers to register, update their business details, and search for tenders with greater ease. Best of all, the CDP will remain free to use, ensuring equal access for suppliers of all sizes, and will allow businesses to set up alerts for relevant opportunities.
Fairer practices
The Procurement Act 2023 also introduces greater oversight. The new law will create a Procurement Review Unit (PRU), which will oversee procurement practices across the public sector.
The PRU will consist of three key services: the Public Procurement Review Service, Procurement Compliance Service, and Debarment Review Service, all aimed at safeguarding against risks and ensuring compliance with the new rules.
Preparing for change
Suppliers should start preparing for the new rules by familiarising themselves with the Procurement Act 2023. Resources, including webinars, training materials, and informational videos, will be made available by the Cabinet Office to help businesses understand the key changes. While the new rules will not apply to ongoing contracts until February 2025, now is the time to get ready for the upcoming shift in public sector procurement.
The Procurement Act 2023 promises to make it easier, fairer, and more transparent for businesses to engage with the public sector.
