On 12th September the Cabinet Office announced that the Procurement Act 2023 will now commence on 24th February 2025 – a delay of four months from the original go-live date of 28th October 2024. This is to allow time for a new National Procurement Policy Statement (NPPS) to be produced.
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The Government wants to ensure that public procurement supports delivery of its missions. The NPPS which sets out the strategic policy priorities for public procurement is an essential element of the Procurement Act, and it is crucial that the new regime commences with a statutory NPPS aligned to the new Government’s priorities.

In order to achieve this, work will now begin on a new NPPS. This will create 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.

This work will be completed by February and therefore, Ministers have taken the decision to delay the commencement of the new regime until the new NPPS is in place. The NPPS laid by the previous administration, and which would have come into force with the Act, will be withdrawn.

Cabinet Office are aware of the hard work stakeholders have undertaken to ensure readiness for the new regime and whilst the delay does allow more time for stakeholders to familiarise themselves with the new regime, they also understand this may impact procurements scheduled to commence under the new Act and have compiled a comprehensive list of FAQs1 to address these eventualities.

The additional time to prepare will also allow for a more seamless digital transition, ensuring a smoother and more effective implementation process for both Contracting Authorities and suppliers.

The Transforming Public Procurement (TPP) programme aims to improve the way public procurement is regulated in order to:

  • Make it more accessible, efficient, and beneficial for both Contracting Authorities and suppliers.
  • Provide a clearer framework for decision making.
  • Create a simpler and more flexible, commercial system that better meets the country’s needs while remaining compliant with our international obligations.
  • Open up public procurement to new entrants such as small businesses and social enterprises so that they can compete for and win more public contracts.
  • Relax restrictions on considering factors such as supplier location and social value, allowing Contracting Authorities more flexibility to support local businesses and achieve wider community benefits.
  • Embed transparency throughout the commercial lifecycle so that the spending of taxpayers’ money can be properly scrutinised.
Disclaimer

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission, or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

 

Sources

1 Transforming Public Procurement-Procurement Act 2023 commencement date, Government Commercial Function, accessed 9 September 2024. PDF File.

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