CBI responds to Transforming Public Procurement consultation

On 15 December 2020, the Cabinet Office released the Transforming Public Procurement green paper which will affect the rules for how the entire public sector spends on everything from outsourced services to common goods. The green paper set out proposals to reform public procurement in the UK designed to:

• speed up and simplify procurement processes
• place value for money at the heart of public spending
• unleash opportunities for small businesses, charities, and social enterprises to innovate in public service delivery

The CBI’s response showed that industry welcomes the ambitious and wide-reaching package of reforms for public procurement in England. From embedding elements of transparency and accountability, to reducing red-tape and increasing flexibility, businesses are broadly supportive of the reforms proposed and see the potential for these steps to support a more effective and innovative approach to public procurement.

To truly ‘transform public procurement’ however, it will be vital that these reforms go hand in hand with a robust implementation plan. They will need to tackle current capacity and capability challenges and shift the culture of commercial teams across the public sector, moving away from lowest cost to a focus on improving outcomes and long-term value for money. It will also rely heavily on the government successfully putting in place the building blocks for more efficient and effective procurement processes – starting with the ambitious centralised data platform for buyers and suppliers.

Given the wide-ranging nature of the green paper it must also be acknowledged that for many of these proposals ‘the devil will be in the detail’. Currently, too many proposals lack the information to be adequately analysed. Publishing additional information and clear guidance for contracting authorities and suppliers in the months ahead will therefore, not only be important for further testing with industry, but will be critical to successful implementation.

The government should be open to further feedback on the guidance before and after publication, as some of these documents will have as significant implications for suppliers as the proposals in this green paper. Industry stands ready to support the development of this guidance and to help with the implementation of any reforms.

Amongst a number of specific comments on the proposals, the CBI submission raises three key areas where industry is particularly keen to continue helping:

• A greater link between the proposed reforms and other commercial policies, such as the Social Value Framework and the Outsourcing and Construction Playbooks
• More emphasis on supporting and driving innovation through public procurement, and steps to tackle the bey barriers to innovation such as IP and risk management
• A greater emphasis on building meaningful partnerships with suppliers, and the benefits that come with a positive collaborative framework, rather than treating procurement like a transaction

Despite these concerns, the green paper represents a significant positive step forward and suppliers to the public sector are above all keen to ensure the best possible reforms are put into legislation. Business will play a critical role in making these proposals a success and the CBI therefore looks forward to working with the Cabinet Office and its members to take this process forward in the coming months.

If you would like to discuss the subject of public procurement or the green paper proposals, please contact Dr Joshua Pritchard, Senior Policy Advisor for Public Sector Markets, and the CBI’s Public Procurement lead.