Public Procurement

The UK government's public procurement policy requires that all government contracts prioritise value for money and transparency, defined as "the best mix of effectiveness and quality for the least outlay over the usage period for the services or goods purchased." Government departments and associated agencies must procure goods and services through open tenders unless there are well-founded reasons to proceed otherwise.

The legal framework governing public procurement has been updated through the Procurement Act 2023, which received Royal Assent on 26 October 2023. This Act aims to modernise and streamline procurement processes, promote open and free competition, and ensure compliance with national and international regulations and data standards. The government's procurement policies align with this legal framework and broader policy objectives, including the Open Standards Principles.

Public procurement represents a significant portion of the UK's economic activity. In the fiscal year 2023/24, gross spending on public sector procurement was £407 billion across the UK, marking an increase of £19 billion (5%) compared to the previous year.

The UK government, through the Crown Commercial Service, provides access to contract opportunities via the Contract Finder website, which lists contracts worth over £10,000 for local government and over £25,000 for national government. While this platform primarily focuses on England, it also includes some UK-wide opportunities. Devolved administrations in Northern Ireland, Scotland, and Wales have their own procurement portals.

As of December 2024, there are approximately 1,906 procurement opportunities available through these platforms. Since its inception, over 92,000 contracts worth £717 billion have been awarded. For instance, Software Box Ltd has been awarded contracts totalling £5,632,403,669.

Useful Links

• Procurement Act 2023 - Guidance Documents This resource provides in-depth guidance on the new procurement legislation, assisting practitioners and suppliers in understanding and complying with the updated regulations.

• Procurement Statistics: A Short Guide This briefing highlights recent procurement statistics, trends, and context regarding public sector procurement spending in the UK.