New public buying rules to favour SMEs and sustainability
In it's newly published National Procurement Policy Statement, the Government has attached conditions to public procurement that require buyers to "maximise procurement spend with small and medium-sized enterprises" and "ensure their suppliers are committed to providing high quality jobs, safe and healthy working conditions, fair pay, opportunity and progression for workers."
The statement says that "This Government wants to maximise every opportunity for these suppliers by opening up competition in public contracts and removing the barriers to participation they face." This forms part of the Procurement Act 2023 which seeks to prevent suppliers being put at either an unfair advantage or disadvantage. Buyers can start applying the new model from February 24th 2025.
According to a Financial Times article which included an interview with Cabinet Office Minister Georgina Gould, the Government "is also examining proposals that would allow local authorities legally to discriminate in favour of SMEs in their communities to maximise spend within their area and help boost local economies." There are a lot more interesting and innovative details to how public procurement will be changing from changes to the way a project is briefed to allow more flexible solutions, to requiring suppliers to advertise jobs locally. Footprint's Nick Hughes has a good write-up on the new policy.