Procurement Act comes into force

The Procurement Act has now come into force.

The new laws aim to put growth, small businesses and transparency at the heart of public contract awards.

The new public procurement regime is more open and is designed to drive value for money.

The Act aims to boost growth by slashing red tape for small and medium sized businesses applying for government contracts, combining multiple regulations into one simple set, and publishing procurement data in a standard, open format on a Central Digital Platform.

The changes will be bolstered by a new National Procurement Policy Statement (NPPS) that sets out this government’s Mission-led priorities which the public sector must have regard to in its procurement activity.

Cabinet office minister Georgia Gould said: "Public sector procurement can now fully deliver on the Plan for Change - unleashing local growth, opening up opportunities and embedding transparency and accountability.

"The Procurement Act, supported by our new National Procurement Policy Statement, will tear down barriers that stop small businesses from winning government work, giving them greater opportunity to access the £400 billion spent on public procurement every year, investing in home-grown talent and driving innovation and growth."

Shirley Cooper, Crown Representative for Small Businesses, said: "This once–in-a-generation change to public procurement laws will provide enormous opportunities for small businesses to take a greater share of contracts.

"The Act, which goes live alongside our bold new National Procurement Policy Statement, will drive economic growth and deliver on the Government’s Missions and the Plan for Change."

"I thank the public sector for the considerable amount of work done to prepare for and understand these new rules, and how they can fully benefit both businesses and the taxpayer."

A new Central Digital Platform is now in operation which will streamline processes and cut red tape, enabling suppliers to register their details and see all bidding opportunities in one place. It is hoped this will encourage more suppliers to bid for government work, increasing competition and supporting economic growth.

As part of plans for greater transparency, citizens will be able to scrutinise public procurement data on this platform.

There will also be new powers to investigate supplier misconduct, including underperforming suppliers and those that pose security risks to supply chains, with the ability to debar or exclude them from contracts.

Emma Jones CBE, founder of Enterprise Nation, said: "Accessing public sector work can act like a growth accelerator for SMEs. Government contracts are solid and reliable and pay within 30 days. They help SMEs develop and invest in new processes, products and efficiencies, as well as take on more staff in their local community.

"By seeing Government procurement through this lens, opening up contracts to more diverse and community-based businesses will be a powerful way to deliver economic growth.

"My organisation has already been busy readying SMEs for this moment. This legislation is the beginning of the next step in the journey to increasing government spend with SMEs and boosting the economy."