The Procurement Act 2023 came into force on 24 February 2025 to drive greater efficiency, transparency, and fairness in public sector procurement. 

The act creates an open and transparent system by:

• implementing the Open Contracting Data Standard so that data across the public sector can be shared and analysed at contract and category level and compared internationally 

• everyone will have access to public procurement data, including the general public, who will be able to scrutinise spending decisions 

• suppliers will be able to identify new opportunities to bid and collaborate sooner in the process, and this will improve competition because suppliers will find it easier to plan and gear up. Buyers will be able to analyse the market and benchmark their performance against others, for example on their spend with SMEs. 

In addition, the Act allows the Government to take action on underperforming suppliers:

• the Act will put in place a new exclusions framework that will make it easier to exclude suppliers who have underperformed on other contracts 

• it will also create a new ‘debarment register', accessible to all public sector organisations, which will list suppliers who must or may be excluded from contracts.

A Government spokesperson said: ‘The National Procurement Policy Statement and Procurement Act together simplify the procurement process, removing bureaucratic rules, and re-focusing the £400bn spent each year on procurement to deliver the Plan for Change.

‘This transformative new regime is up and running as planned, and we have seen strong, ongoing interest from suppliers and contracting authorities in the new central digital platform.'

Preparation

NHS North of England Commercial Procurement Collaborative (NOE CPC) prepared for the commencement of the Procurement Act 2023 by ensuring all members of the organisation, including colleagues in non-procurement roles, knew what the Act contained and how it would impact public procurement.

The organisation brought together a team of Procurement Act champions who undertook extensive learning and development on the legislation and its implementation, who were then able to pass this knowledge on to their colleagues.

As part of the Transforming Public Procurement programme, set up by the Government Commercial Function, head of procurement operations Natalie Ledger was one of the organisation's two super users. She took on the responsibility of gaining a thorough understanding of the new legislation, joined the Community of Practice and led efforts to ensure all colleagues were ready for its introduction.

Ledger said: ‘As an NOE CPC Procurement Act champion, I have actively encouraged colleagues to upskill themselves and use the training and resources available to them, such as the Government Commercial College, legal training webinars, and the FutureNHS portal.'

‘Myself and a number of colleagues completed the super user deep dive course, which was three days of in-depth discussion, with peers across the public sector.'

NOE CPC has also been working closely with its partners at NHS London Procurement Partnership and will continue to share its knowledge, expertise and learning with them.

‘With the preparatory work we have undertaken so far, we feel that we are well-placed to support our colleagues, our customers and suppliers from the outset of the new legislation,' Ledger added.

Reaction

It's now a month since the Act came into force and the consensus seems to be that the implementation has gone relatively smoothly and has been well received.

Lee Morgan, procurement policy manager at NHS Shared Business Services, said: ‘From an NHS-wide perspective, most organisations seem to be getting to grips with the new legislation reasonably well. We've received a few questions and requests for support from both NHS organisations and suppliers, which we're happy to provide, but there doesn't seem to have been any widespread confusion, probably thanks to the comprehensive communications and training provided by the Cabinet Office and others.

‘From the perspective of my own organisation, NHS SBS, our first framework agreement to be procured under the new Act is progressing well, and we're expecting to be able to publish this very soon.'

Ruth McColl, assistant director of procurement – corporate, clinical and regulation at the East of England Procurement Hub, agrees that the implementation has gone reasonably well. 

She says: ‘A great deal of consideration of effort and consideration has gone into preparing for the Act, and despite the guidance, documents and National Procurement Policy Statement being released quite close to the go-live date, we have responded positively to the changes. Ideally, we would have had all the information and resources well in advance, but given the way procurement works in the NHS, in reality we won't see the full impact of the Act for another year or so.

‘There have been some concerns around the extra admin that will result from the additional notices but on the whole, there is a real drive in our NHS community to learn and engage with the Act so it can be leveraged to deliver more efficiently.' 

However, McColl thinks more focus and support for suppliers is needed.

‘Our organisation is working with the supply market to ensure SMEs and Voluntary Community and Social Enterprises, in particular, are fully aware of the governing rules and how to apply them so they are able to confidently engage with the NHS,' she added.