Procurement Act implementation date delayed to February

Georgia Gould, parliamentary secretary for the Cabinet Office has announced that the new regime under the Procurement Act will now go live on 24 February 2025. This is a four-month delay from the original date of 28 October 2024.

The Procurement Bill received Royal Assent in October 2023. It will reform existing procurement rules.

Existing legislation will apply until the new regime goes live, and will also continue to apply to procurements started under the old rules.

A new National Procurement Policy Statement (NPPS) will now be developed, which will replace the  the National Procurement Policy Statement which was laid in Parliament by the previous government on 13th May 2024 and which will now be withdrawn.

The new government has said that it is important the new regime commences with a statutory NPPS aligned to the Government’s strategic priorities - creating a mission-led procurement regime which builds on the transformative powers within the Act, and which meets the challenge of applying the full potential of public procurement to deliver value for money, economic growth and social value.

Georgia Gould said: "The Procurement Act 2023 aims to create a simpler and more transparent regime for public sector procurement that will deliver better value for money, and reduce costs for business and the public sector. This Government will use this legal framework to deliver greater value for money and improved social value, which will help raise standards, drive economic growth and open up public procurement to new entrants such as small businesses and social enterprises.

"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."