1. Implementation of the Procurement Act 2023

The Procurement Act 2023, effective from 24 February 2025, has introduced significant reforms to public procurement. These changes aim to simplify processes and increase competition, making it easier for suppliers to participate in public contracts. Notably, the Act has led to the adoption of the Competitive Flexible Procedure (CFP), which allows for more dynamic and flexible tendering processes. Early data indicates that 23% of above-threshold tenders are now using the CFP, reflecting a shift towards more competitive and transparent procurement practices . Financial Times+7GOV.UK+7Crowell & Moring – Home+7tussell.com

2. Increased Public Procurement Spending

Government budgets for procurement have risen by approximately 13% in 2025/26, according to HM Treasury data. This increase indicates a growing commitment to investing in public services and infrastructure, leading to more projects being put out to tender . House of Commons Library+1

3. Emphasis on Social Value

There is a renewed focus on ‘social value’ in public procurement. The government is encouraging contracting authorities to consider broader societal benefits, such as job creation and environmental sustainability, when awarding contracts. This approach aims to ensure that public spending delivers maximum benefit to communities and aligns with national priorities . JAGGAER+8Financial Times+8tussell.com+8

4. Support for Small and Medium Enterprises (SMEs)

Recent policy changes have been implemented to support SMEs in accessing public sector contracts. This includes simplifying procurement processes and setting targets for SME spending. The government has issued new guidance to 20,000 public agencies, emphasizing the need to support SMEs and social enterprises in public contracting processes. These reforms aim to stimulate local growth and job creation, making it easier for smaller businesses to compete for public sector work . Financial Times+2The Times+2The Times

5. Strategic Focus on Domestic Suppliers

There is a growing emphasis on prioritizing British firms in public procurement. Ministers are proposing new rules to favor UK-based companies over foreign competitors in government contracts, particularly in critical sectors like steel, energy, and cybersecurity. This strategy aims to enhance national security and stimulate domestic job growth, ensuring that public spending supports the UK economy . The Sun

These developments indicate a significant shift towards more open, competitive, and strategically aligned public procurement in the UK. For suppliers, this presents increased opportunities to engage with the public sector, provided they are prepared to navigate the evolving procurement landscape. publicsectorexperts.com+8Financial Times+8Tracker+8