In an aim to transform the landscape of public sector spending, the Procurement Act 2023 is set to show in a new era of regulations governing how the UK government allocates its procurement budget, estimated at around £300 billion annually
The implementation of the Procurement Act 2023 marks a key moment, reflecting the government’s ambition to create a more transparent, and innovation-friendly system while maintaining international obligations post-Brexit.
This ruling promises several advantages for both suppliers and buyers
It aims to simplify processes by cutting red tape, encouraging innovation, and enhancing transparency through a fully open and accessible procurement system.
Emergency procurement procedures will be expedited to facilitate swift responses to urgent needs.
What does this mean for those involved in public sector procurement?
Although the Act has received Royal Assent and the accompanying regulations were laid in Parliament in March 2024, the changes are set to come into full effect by October 2024. The Cabinet Office will provide a six-month notice before the new regulations go live.
To prepare for this transformation, public sector buyers are advised to undertake comprehensive readiness assessments. The Cabinet Office’s Transforming Public Procurement (TPP) programme is leading these efforts, offering guidance and resources through its webpage.
Organisations are encouraged to assess five key workstreams:
- Commercial activity: Review all ongoing and upcoming commercial opportunities.
- Standard operating procedures and policies: Ensure existing procedures are robust and adaptable.
- Guidance and information: Update documents used by teams and suppliers.
- Systems: Evaluate the readiness of internal systems for necessary changes.
- People: Provide adequate training to staff to familiarise them with the new regulations.
The Cabinet Office’s TPP programme has already launched training initiatives such as Transforming Public Procurement Knowledge Drops.
These resources, available for both buyers and suppliers, offer a brief overview of the upcoming changes. Additionally, specific training options cater to buyers requiring an in-depth understanding of the new regime.
The Crown Commercial Service (CCS) is collaborating closely with the Cabinet Office to facilitate a seamless transition for public sector organisations. They have established a dedicated project team to implement internal changes necessary to leverage the benefits of the new regulations once they come into effect.
As we look ahead to October 2024, public sector entities must prioritise preparedness. Understanding and adapting to the Procurement Act 2023 will not only ensure compliance but also unlock new opportunities for engagement with suppliers and stimulate innovation within the public sector.
