New Bill will shape public sector purchasing for a generation

Amidst a flurry of new legislation announced in the Queen’s Speech in May 2022, the Procurement Bill may have slipped under the radar of many UK businesses. Yet this 122-page piece of legislation – that sets out rules for how government buys goods and services from businesses – is a once in a generation piece of regulation.

Whether an SME or an international conglomerate, if your business has contracts with the public sector – or would like to – understanding this Bill is vital.

The CBI has been involved since the outset in the creation of this Bill, including a response to the Green Paper consultation in 2021, and will continue to be a valued partner to the Cabinet Office going forward.

The highlights for the business community

Various efforts to simplify public procurement outlined in the Bill, including the reduction in the number of procedures and an emphasis on user friendly language, will help businesses of all sizes to bid for government contracts.

Many businesses have found the current process confusing and unnecessarily burdensome, with the result that new market entrants often refrain from bidding. Supporting SME’s and new entrants has been a key ambition for this government, and the Bill will help encourage these firms to get involved.

Similarly, the introduction of a new ‘flexible’ procedure has the potential to support greater dialogue between suppliers and public bodies. One of the largest issues with the current interpretation of procurement rules is that many public bodies are afraid to discuss with suppliers for fear of legal challenges later on during the procurement process. This can lead to prescriptive procurements which fail to tap into the most appropriate or latest innovations in goods and services.

A new digital platform proposed will deliver a significant reduction in the paperwork required for suppliers – a tell-us-once approach for basic company information