How Do Businesses Feel One Year Into the UK Procurement Act?

It has been just over a year since the Procurement Act came into force, and a new Pulse Report from Procurement Hub, part of Places for People (PfP), reveals a sector that is complying but far from confident.

The introduction of the Procurement Act 2023 was on 24 February 2025, marking a major shift in the way public procurement operates.

The UK's public sector allocates approximately £350bn (US$462bn) annually to procurement. However, questions remain about whether this public expenditure translates into quality employment and appropriate standards. The Procurement Act 2023, introduced by the Conservative government to supersede the Public Contracts Regulations, implemented reforms to the exclusions framework.

Over the last 12 months, the Act has looked to streamline processes and ensure smaller businesses get a fair shot at competing.

A significant gap between compliance and confidence

Despite strong early adoption, with almost 74% of respondents already procuring under the new regulations, just one in 10 feel confident navigating the Act day-to-day. Furthermore, 91% say they would benefit from more support or guidance to operate confidently under the new rules.

This shows a significant gap between compliance and confidence across the public sector and suggests that while organisations are making progress, they are still in the early phases of adapting to the Act’s culture shift and operational demands.

Alan Heron, Managing Director of Procurement Hub, says: “Twelve months on from the launch of the Procurement Act, it’s clear that things aren’t quite where any of us hoped they would be. Compliance may be high, but confidence certainly isn’t, and the fact that 91% of public sector procurement teams say they need more guidance speaks for itself.

“The first year may be behind us, but in many ways, the hard work starts now. Our priority at Procurement Hub is to help organisations move from simply meeting the rules to feeling genuinely confident and capable under them.”

Stagnant optimism amidst dual regimes

Most procurement professionals report that the Act has yet to deliver noticeable operational improvements. According to the Pulse Report:

• 66% describe their experience so far as “average”
• Only 26% report a positive experience
• Over 62% say their optimism has remained unchanged since the Act launched
• 14% say they feel less optimistic than at the outset

The data shows that many public sector teams are still adjusting to new processes, navigating dual procurement regimes and building an understanding of the Act’s practical implications.

Rising administrative burdens and resource gaps

Administrative burden and complexity remain key pressure points. As organisations continue to familiarise themselves with the new requirements, several barriers are emerging:

• 27% say the Act has added extra administrative burden
• 18% report increased regulatory complexity
• 16% say transparency and reporting requirements have added workload
• 9% identify capacity and skills gaps
• 12% highlight resource constraints and competing priorities

Several respondents report that while the Act’s intention to improve transparency is welcomed, the practical impact has been “more paperwork without more resources.”

Alan adds: “2026 could be a watershed year for public sector procurement. The transition to the Procurement Act has settled into operational routine, but the profession is now facing challenges that go far beyond regulatory compliance. We’re operating in a short‑term‑pain economic cycle, grappling with a widening digital skills gap, and facing ever‑increasing pressure to deliver Net Zero outcomes despite significant technical debt.

“The task for procurement teams is no longer just about applying the Act correctly, it’s about navigating a far more volatile and demanding environment. Procurement Hub is here to help organisations meet that challenge with clarity and confidence.”