New law seeks to make it easier for small businesses to tender for council contracts

Small businesses and social enterprises are set to benefit from a simplified and more transparent procurement process relating to the supply of goods, works and services to public sector organisations, including Shropshire Council.

The Procurement Act 2023, which will reform the existing Procurement Rules, received Royal Assent in October last year and will now come into force on 24 February 2025 (a change to the original date which was 28 October 2024), replacing the existing regulations that derived from the EU.

The Act will create a simpler and more flexible procurement system, while remaining compliant with international obligations. It aims to embed transparency throughout the procurement lifecycle so that the spending of taxpayers’ money can be properly scrutinised.

From February, for larger contracts, the council will be obliged to publish additional information about its procurement process including an 18-month pipeline of upcoming activity and notices regarding the performance of supplier’s contracts, such as where there are performance issues and variations to contracts.

A central digital platform, operated by the government, will act as a ‘one-stop shop’ which should make it simpler for small business to access opportunities and it means they will only need to submit most of their organisational details once. The council will be encouraged to engage with the market of potential suppliers earlier in the procurement process to develop its requirements and aim to remove and reduce any processes that could be considered a barrier for small and medium enterprises (SMEs) to participate.

Mark Jones, Shropshire Council’s Cabinet member for growth and regeneration, said:

“We spend around £400m a year on buying in goods, works and services. Therefore, this is an important and welcome change which will not only increase transparency, but also make it easier for small businesses and social enterprises to compete for contracts with the council – a key aim in our policy.”

The Act gives the council an increased ability to exclude suppliers under specific conditions such as historical severe poor performance and a central debarment list will make it easier for procurement teams to see details of providers who have been excluded from public sector contracting.

The new procurement rules represent a change in priorities for procurement, one that aims to make the process more transparent and fair for all parties.

More information about the Procurement Act 2023 can be found on the Gov.uk website, where people can also subscribe to a regular update bulletin.