August will mark six months since the Procurement Act 2023's introduction. With application of the National Procurement Policy Statement (NPPS) mandatory from October, it is right that we take stock of the Act's effectiveness so far, to help steer progress in the months ahead. And given the resources local government teams have put towards implementation of the reforms - at a time of budget pressures – it is imperative that council procurement teams, and leaders, understand what may hinder the Procurement Act from reaching its goals.
Alongside innovation, flexibility, transparency and social value benefits, the Act seeks to increase supplier diversity and support SMEs to participate in public sector procurement. There are 870,000 construction SMEs in the UK – more than any other UK industry. The size of the market, coupled with the underlying structures of the Procurement Act, create a huge opportunity for construction businesses. However, accessing the win-win benefits relies on awareness and readiness; areas where many SME businesses have a long way to go.
