National Procurement Policy Statement published

The Government has today published its new National Procurement Policy Statement - GOV.UK which Contracting Authorities will need to “have regard to” when making decisions in relation to procurements governed by the Procurement Act 2023. 

With only 10 days to go until the PA23 goes live, it's perhaps helpful that the priorities established in the new NPPS don't differ significantly from those in the previous NPPS, being: 

• Drive economic growth and strengthen supply chains by giving SMEs and VCSEs a fair chance at public contracts, creating high quality jobs and championing innovation.
• Deliver social and economic value that supports the Government’s missions including by working in partnership across organisational boundaries.
• Ensure the right commercial capability and standards are in place to procure and manage contracts effectively and to collaborate with other contracting authorities to deliver best value.

The NPPS sets a number of obligations on Contracting Authorities to help achieve those priorities, but some of the most interesting changes aren't in the NPPS at all, but are instead set out in the accompanying ministerial statement from Minister Georgia Gould here. Not only does this suggest that we can potentially expect new primary legislation to further reform public procurement processes, but it also indicates that several other policy measures will follow, including:

• New rules to require all government departments and their arm’s length bodies to set three-year targets for direct spend with SMEs and VCSEs and publish progress annually. 
• Regular spot checks to ensure smaller companies in the supply chain are paid within 30 days. 
• Reform (“streamlining”) to the way social value is taken into account in central government procurement.
• Changes to allow local authorities to reserve competitions for low value contracts for local small businesses and social enterprises.
• The establishment of a new Commercial Innovation Hub and potentially a Digital Commercial Centre of Excellence. 
• Updates to the Sourcing Playbook and consultation on a new public interest test to assess whether work should be outsourced. 

Who says procurement is boring?!

The Government is determined to ensure the £400 billion of public money spent on public procurement annually delivers economic growth, supports small businesses, champions innovation, and creates good jobs and opportunities across the country.

https://questions-statements.parliament.uk/written-statements/detail/2025-02-13/hcws449