Industry leaders have welcomed the Cabinet Office’s decision to delay implementation of the Procurement Act 2023 to enable a policy statement to be produced.

The act, which received royal assent on 26 October 2023, will be delayed from 28 October 2024 to 24 February 2025 to allow the Government to provide a new National Procurement Policy Statement.

Announcing the decision, Georgina Gould, Parliamentary Secretary for the Cabinet Office, said: “Under the Act, the previous administration published a National Procurement Policy Statement to which contracting authorities will have to have regard.

“But this statement does not meet the challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value.

Bold and ambitious

“I have therefore taken the decision to begin the vital work of producing a new National Procurement Policy Statement that clearly sets out this Government’s priorities for public procurement in support of our missions.

“It is crucial that the new regime in the Act goes live with a bold and ambitious statement that drives delivery of the Government’s missions and, therefore, I am proposing a short delay to the commencement of the Act to February 2025 so this work can be completed.

“I am confident that the extra time to prepare will allow for a more-seamless transition, ensuring a smoother and more-effective implementation process for both contracting authorities and suppliers.”

The Procurement Act 2023 aims to create a simpler and more-transparent regime for public sector procurement that will deliver better value for money and reduce costs for business and the public sector.

It will also act as a framework to drive economic growth and open up public procurement to new entrants such as small businesses and social enterprises.

Breathing space

Welcoming the delay, Louise Bennett, senior associate specialising in public procurement at UK and Ireland law firm, Browne Jacobson, told Education Property: “A four-month delay to the implementation of the Act gives much-needed breathing space to public authorities, a large number of which understandably weren’t ready for the significant changes it brings due to the late arrival of statutory guidance.

“This legislation will fundamentally transform how the public sector purchases goods and services, with an overarching principle of ensuring it delivers value for money, maximises public benefit, and acts with integrity throughout a procurement exercise that should also continue to focus on equal treatment to bidders.

“It places a greater emphasis on transparency, supplier performance and non-financial criteria such as quality, local job creation and environmental impact.

“This requires public authorities to review procedures and skillsets within their organisation before the Act comes into force, while contract management should be top of the ongoing strategic considerations in order to run smooth procurement exercises.

“They would be wise to use the extra time afforded by the government to ensure they are up to speed on the new regulations and have everything in place so they are now ready from 24 February next year.”