On the morning of Thursday 12 May, it was announced that the Procurement Act 2023 ("the Act") would be delayed.
The Act, a flagship post-Brexit policy of the previous Conservative administration, was due to come into force on 28 October 2024; however, Georgia Gould, Parliamentary Secretary for the Cabinet Office has issued a statement to the House of Commons advising that this will be delayed until 24 February 2025.
The Parliamentary Secretary noted that the National Procurement Policy Statement ("NPPS") drafted by the previous government, does not meet the challenge of applying the full potential of public procurement to deliver value for money, economic growth and social value.
The delay, therefore, will allow the government to prepare an updated version of the NPPS to be in place for the Act coming into force and providing extra time to allow for a more seamless transition for both contracting authorities and suppliers.
This delay will likely have a mixed response by those affected.
Some authorities and contractors may be relieved to have some more time to plan for the upcoming changes; however, there will be others who have followed Cabinet Office guidance and are keen to begin using some of the newer tools and flexibilities the Act provides.
The government is now likely to be under further scrutiny and observers will be keen to see updated NPPS and how it will deliver the government's priorities.
The Shepherd and Wedderburn team continue to monitor all developments concerning the Procurement Act. If you have any questions, please contact Euan Murray or Colin Bathgate.
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