Tech vendor considerations as UK public sector spend continues to rapidly increase

The UK Government’s ‘Quantum leap’ announcement on 17 March 2026, confirming an investment of up to £2 billion to support the UK’s ambition to ‘become the first country in the world to commit to making and deploying Quantum computers at scale by the early 2030s’ (UK's 'Quantum leap') has further cemented the UK’s Government’s position to attract and invest in world-leading technology within the UK. This announcement is in addition to the UK Government’s existing delivery of the roadmap for modern digital government (A roadmap for modern digital government - A roadmap for modern digital government) and the 2025 AI Opportunities Action Plan (AI Opportunities Action Plan - GOV.UK).

As many tech vendors strategically increase investment in the UK market, there are a number of key considerations for tech vendors seeking a greater share of UK public sector tech spend. Some key considerations include:

1. Indirect/direct strategy

Given the high-profile nature of many UK public sector tech procurements, tech vendors that previously only offered services to UK public sector buyers via resellers/partners may now be closely reviewing this strategy as the race to deliver first-of-its kind technology to support digital transformation of UK public services intensifies. In cases where there are indirect and direct bids submitted for the same UK public sector tender for a vendor, the vendor will need to consider how to manage confidential and commercially sensitive information if they are involved in multiple tenders and may be required by the Authority to establish ethical wall arrangements. Tech vendors should also consider reviewing standard reseller terms to ensure that these are appropriate for UK public sector orders since the Procurement Act 2023 came into force (for our Bidder’s Guide to the Procurement Act 2023, please click here) as well as assessing the impact of potentially being named a ‘Key Sub-Contractor’ in any indirect order placed with its reseller involving a UK public sector contract (including in respect of any certification requirements – see ‘Standard and certifications’ section below).

2. Tech framework submissions 

Tech vendors looking to increase market share within the UK public sector market should continue to assess possible routes to market, including the potential opportunities via UK public sector tech frameworks. Whilst some Crown Commercial Services (CCS) tech frameworks, such as G-Cloud (see our article on the G-Cloud 15 Framework here) and Back-Office Software (BOS) 2 will be very familiar to vendors already operating in the UK market, as well as the CCS AI Dynamic Purchasing System, vendors looking to operate in particular sectors such as health care or defence should keep a track of other frameworks designed specifically for selling tech products and services to these sectors such as those operated by NHS Supply Chain, NHS SBS and others. Tech framework submissions are likely to be strategic decisions by vendors, given the time and financial resource that will be required to prepare a framework submission, as well as the internal risk appetite for tech vendors who would usually operate on their own supplier terms. It is therefore essential that tech vendors have the appropriate legal and governance arrangements in place to quickly assess new framework opportunities as these arise to support the future growth aspirations of that tech vendor, who may be looking to rapidly expand its market presence within UK public sector tech.

3. Compliance with UK public sector contract templates

As well as compliance with UK public sector tech framework terms, UK tech procurements outside of frameworks are likely to require a supplier’s compliance with one of the UK public sector standard contract templates (e.g. Model Services Contract (MSC), the Mid-Tier Contract or the Public Sector Contract (PSC)). For direct orders, tech vendors will need to assess their compliance with these standard public sector contract terms and consider areas where deviations from its own standard terms represent an acceptable contractual risk and/or operational risk (e.g. security and/or delivery policies) for the tech vendor. In many cases, tech vendors may have some ‘non-negotiables’ from a delivery perspective, but in other cases, the vendor will need to consider its ability to agree certain terms on a case-by-case basis within the overall context of a particular procurement. Tech vendors who are new to the UK market should also build an internal awareness within its business of UK public sector contract terms that apply as a matter of statue (e.g. prompt payment obligations).

4. Standards and certifications 

Tech vendors should regularly assess compliance with ISO standards and other certifications (e.g. Cyber Essentials) required for many UK tech procurements (whether framework or otherwise). Even if a tech vendor is solely offering its products and/or services to UK public sector buyers via resellers/partners, compliance with such standards and/or certifications may still be required if the vendor is considered a ‘Key Sub-Contractor’.

5. AI terms

Tech vendors delivering UK public sector contracts should be aware of the ‘Artificial Intelligence Playbook for the UK Government’ (AI Playbook) which was first released in February 2025 (AI Playbook or the UK Government - GOV.UK) which outlines a set of key principles UK public sector buyers should consider when procuring tech solutions involving AI. Tech vendors should be able to clearly explain to UK public sector buyers what AI terms apply to the products and/or services the buyer is procuring to ensure that the buyer can satisfy itself that it understands what AI is involved in any tech solution it is procuring and where the potential risks and/or liability may lie for both the buyer and tech vendor.

If you are a technology supplier looking for support with UK public sector technology contracts, please contact Hannah Barton, Lucy Pegler or Patrick Parkin.