In February of this year, the long-awaited UK Procurement Act 2023 officially took effect, aiming to enhance and streamline processes while enabling a broader range of businesses to engage with the public and utility sectors.
With these sectors spending around £350 billion on procurement annually, the new Act, referred to by Procure Partnerships as “the biggest change in procurement laws in over 30 years,” is expected to drive significant innovation and diversification in supply chains across the country.
This concise guide outlines five key updates from the new Act, along with several specialised skills your procurement team can cultivate to stay ahead as the landscape changes.
The UK Procurement Act: 5 updates for businesses to know in 2025
In their short guide for suppliers, the government stated that these changes would especially benefit small businesses, start-ups and social enterprises by facilitating their collaboration with the public sector, including supplying to government departments, the NHS, local authorities, universities, schools, social housing organisations, police and fire brigades and utility companies.
However, they advise businesses of all sizes to stay informed about these updates if they provide or intend to provide goods, works, or services to these sectors. Next, we will explore each key update.
1. Unified framework for public procurement
The Procurement Act was first announced in 2023, factoring in the UK’s Brexit departure from the European Union in 2020. As such, the 2025 update replaces EU regulations with a British framework to simplify processes for public bodies and suppliers. Linklaters states that the replaced regulations include:
- The Utilities Contracts Regulations 2016
- The Concession Contracts Regulations 2016
- The Public Contracts Regulations 2015
- The Defence and Security Public Contracts Regulations 2011.
They specifically state that this update “provides more flexibility and less ‘red tape’ around the award of public contracts.”
2. Diverse opportunities for SMEs and social enterprises
By encouraging authorities to divide large contracts into smaller parts, Procure Partnerships explains, “The reform aims to boost SME participation, enable greater competition and open up opportunities for specialist suppliers.”
This process, known as ‘lotting,’ means that more contracts will be available, enabling a diverse range of suppliers to undertake these smaller pieces and reduce supply chain risks. SMEs may also find it easier to bid for or fulfil these contracts, allowing for stronger competition and innovation.
3. Simplified, flexible tendering processes
Supporting greater accessibility, the government states that the UK Procurement Act’s 2025 update “simplifies the bidding processes,” enabling easier negotiation and partnerships with the public sector. With the release of the enhanced Find a Tender platform, businesses can manage their bids online and access streamlined information, with greater visibility of new public procurement opportunities and free search and alert functions.
4. Emphasis on sustainability and social value
As explained by Thornton and Lowe, “Traditionally, awards were based on the Most Economically Advantageous Tender (MEAT), which required cost to be a central component of the decision-making process.”
MEAT has now been simplified to MAT, which stands for ‘Most Advantageous Tender.’ By removing the emphasis on cost, they argue that MAT enables procurement decisions based on “quality, social value and project-specific outcomes.” With enhanced flexibility, this reflects a broader shift toward “sustainability, innovation and community benefit.”
5. Increased transparency
The UK government states that additional benefits of the Procurement Act 2023 include improved oversight of business decisions and strengthened payment terms. Contracting authorities must publish quarterly reports on individual payments exceeding £30,000 under a public contract to further emphasise transparent procurement processes.
Additionally, for contracts exceeding £5 million, Procure Partnerships details that buyers must:
- Set and publish at least three KPIs to assess contractor performance
- Review these KPIs annually
- Make performance data publicly available.
Similarly, if a contract is breached or the delivery is unsatisfactory, “authorities must publish notices outlining the issue, including any contract terminations or settlements.”
In-demand skills for teams to develop following the UK Procurement Act
The Government Commercial Function has launched a free learning and development programme to assist businesses in preparing their procurement teams during this transitional period. Additionally, the updated UK Procurement Act will heighten the demand for specialist skills in the sector, which we will explore next.
1. Digital and decision-making skills
The Act encourages procurement professionals to develop new digital skills by utilising the Find a Tender service, effectively navigating its search, bidding and alert functions. The long-term goal is to enable workers to manage public contracts and tenders with fewer administrative hurdles, providing them with greater oversight, efficiency and autonomy in decision-making, while minimising time spent on repetitive paperwork.
2. Reviewing and diversifying supplier lists
By utilising the updated MAT technique, procurement workers will be expected to identify and select suppliers from a more diverse pool, considering factors such as sustainability, social benefits and community contributions. In addition to reviewing existing supplier lists and adapting their sourcing strategies, this may require them to thoroughly evaluate bids not only on price and quality but also on broader societal impacts and their ability to meet public KPIs.
3. Documentation, reporting and data analysis
Beyond its core bidding function, the Find a Tender service serves as a central digital platform for buyers to meet transparency requirements and access essential information. As the Act mandates more publicly shared KPIs and documentation, workers must ensure that decisions are justified and monitored through regular reports. Throughout the procurement lifecycle, the platform will be updated with timely notices and will collect this public data for dashboard analysis. This transparency may invite closer scrutiny of selection decisions, promoting accountability and enabling procurement professionals to measure the positive impact of their work in the sector.
Hiring a temporary procurement expert to upskill your team
If your business could benefit from additional support during this transitional period but cannot commit for the long term, a temporary procurement hire can provide valuable expertise and offer a cost-effective solution to bridge skills gaps and mentor your permanent employees.
These contract hires join for a set period or until specified projects are completed, helping to streamline processes, ensure compliance and manage increased reporting demands until your core team is fully trained. Many temporary procurement specialists also transition into permanent roles after discovering a strong employment match. Learn more in our brief FAQ guide or contact our dedicated procurement recruiter, Bethan Kirby, today.
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