The government has announced a delay to the start of the Procurement Act 2023, moving the commencement date to February 2025.

The Procurement Act aims to simplify and improve transparency in public sector procurement and open opportunities for small businesses.

While the Act’s goals remain unchanged, the government has decided to develop a new National Procurement Policy Statement before the Act comes into force. In short, Labour don’t like the Policy Statement that the Conservatives previously wrote and want to write their own.

How could this affect businesses?

For businesses that had hoped to start capitalising on the simplified procurement processes promised by the Act, this is frustrating news. You may have wasted time and money on getting ready and opportunities for contracts being offered this autumn may now be more difficult.

On the other hand, the additional time may offer you an extended period to be able to adapt to the new requirements and opportunities. This could provide a chance to better prepare for the potential benefits of easier access to public contracts.

Whether or not the delay will mean that the revised framework offers more favourable conditions for businesses remains to be seen.

What’s next?

The government plans to withdraw the previous policy statement and start drafting new regulations to implement the Procurement Act on 24 February 2025. This also involves working closely with the Welsh and Northern Irish governments to ensure a smooth roll-out across the UK.

For businesses, the key takeaway is to stay informed and prepared. The delay offers a window to get ready for the changes, ensuring that when the Act does come into force, you can take full advantage of the new opportunities it promises to deliver.

See: https://questions-statements.parliament.uk/written-statements/detail/2024-09-12/hcws90