Mohamed Hans, CIPFA Procurement Advisor
The UK Government has announced a delay in implementing the new Procurement Act 2023, which is now expected to take effect on February 24, 2025. This short delay gives contracting authorities in England, Wales, and Northern Ireland more time to prepare for the changes. The delay has been welcomed by public bodies and suppliers, who have been under pressure for months to get ready for the sweeping reforms.
The postponement also reflects the government’s focus on maximising the value of public procurement, which accounts for £407 billion in annual spending. With recent concerns about the country’s financial health, the government aims to ensure that public spending delivers value for money, boosts economic growth, and generates social benefits.
Why the Act is Important
The Procurement Act 2023 is a major post-Brexit reform aimed at overhauling the UK’s outdated procurement system, which has long been governed by EU-derived rules. The previous government hailed it as one of the biggest changes to procurement regulations in the country’s history, with the goal of making public contracting simpler, faster, and more transparent.
The Act introduces new objectives for public bodies, including delivering value for money, sharing information more openly, and acting with integrity. Additionally, it aims to reduce barriers for small and medium-sized enterprises (SMEs) to compete for public contracts. These changes are designed to ensure that the UK’s procurement system is modernised to reflect its new post-EU reality.
Key Changes
One of the most significant changes is a greater focus on transparency. Contracting authorities will need to publish multiple notices during the procurement and contract management process—16 in total. This includes a new "Transparency Notice," which will need to be issued before awarding a contract directly to a supplier. This move is intended to prevent conflicts of interest and ensure that contracts are awarded fairly.
The Act also brings a more flexible approach to how public contracts are managed. Under the current rules, public bodies follow a rigid checklist for awarding contracts. The new law gives them more freedom to design competitive flexible procedures that better meet their needs. However, whether this flexibility will lead to better deals or legal challenges remains to be seen.
Tackling Supplier Performance
Poor performance by suppliers has been a long-standing issue for public contracts, often resulting in wasted taxpayer money. The new law introduces strict measures to monitor supplier performance, especially for contracts worth over £5 million. Authorities will now be required to publish key performance indicators (KPIs) and track and report on how well suppliers are meeting these targets.
If a supplier fails to meet expectations, the contracting authority must issue a “Contract Performance Notice,” which could lead to the termination of the contract or exclusion from future public contracts. For particularly bad cases, suppliers may be placed on a new Debarment Register, effectively blacklisting them from future contracts.
What's Next?
The delay gives contracting authorities and suppliers more time to adjust to the upcoming changes. However, with the new regulations just months away, organisations must remain focused on preparing for the significant administrative burdens and procedural shifts. Authorities will need to be agile and organised in implementing these changes and ensuring that they are ready when the Act goes live in February 2024.
While the delay provides breathing room, the government’s message is clear: public procurement must be used to drive economic growth and social value. Public bodies and suppliers alike should take this time to fully understand and prepare for the transformational impact of the new Procurement.
To learn more or discuss your implementation plans, please contact Mohamed Hans, CIFPA Procurement Advisor.