What is the Procurement Act 2023?
The Procurement Act 2023 is set to transform the regulations governing public sector spending, and you can start preparing now.
What is the Procurement Act 2023?
The Procurement Act 2023 introduces major changes to UK procurement regulations. Each year, the public sector spends about £300 billion on public procurement, which includes expenditures on:
- Goods: such as office equipment or furniture
- Works: including the construction and maintenance of roads, schools, and major infrastructure projects
- Services: like adult social care, waste management, and technology services
On October 26, 2023, the landmark Procurement Bill received Royal Assent and became the Procurement Act 2023. Following this, the Procurement Regulations 2024 were introduced in Parliament on March 25, 2024. This statutory instrument (SI), a type of secondary legislation, enforces various powers within the Procurement Act 2023 and provides additional details about the new procurement regime.
These changes signify that the regulations governing public spending in the UK are about to evolve.
The Cabinet Office is spearheading a readiness initiative called Transforming Public Procurement (TPP) to help prepare for these new regulations. For detailed information on how to get ready for the new regime, visit the Cabinet Office Transforming Public Procurement webpage.
What does the Procurement Act 2023 entail?
After the UK left the European Union in 2020, the government aimed to establish a simpler, more flexible commercial system that aligns with the country’s needs while adhering to international obligations. This led to the creation of the Procurement Act 2023, which introduces a new and improved set of regulations.
The new law offers several benefits to suppliers and buyers, including:
- Reducing red tape and promoting innovation
- Enhancing transparency by creating a fully open system where everyone has access to public procurement data
- Accelerating competition processes for emergency purchases, enabling buyers to meet urgent needs swiftly and efficiently
- Simplifying interactions with the public sector, encouraging more SMEs to bid for contracts
When will the regulations change?
The Procurement Act 2023 has already received Royal Assent, making it law. The secondary legislation was introduced in March 2024, but the changes to the procurement regime are not yet in effect.
The Procurement Regulations 2024, introduced in March 2024, bring some elements of the Act and the wider regime into effect. This statutory instrument (SI), a form of secondary legislation, is available for review.
It is expected that the new regulations will be fully implemented in October 2024. The Cabinet Office will announce the ‘go-live’ date for the new regulations at least six months in advance.
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