Why Leaders are Conflicted on UK's Public Procurement Act
A mix of cautious optimism and concern surrounds the UK's new Public Procurement Act, which came into effect in February 2025.
That's according to research commissioned by Commercial Services Group, a provider of public sector procurement services, which spoke to more than 500 senior executives and procurement leaders across a range of sectors, including local government, health, housing, education and blue light services.
Just 28% said they felt prepared to comply with the transparency requirements set out in the Act, while a third report having little to no knowledge of the Act or the objectives of the National Procurement Policy Statement (NPPS).
Local government professionals were found to be the most prepared, while NHS and education leaders felt less confident.
Senior leadership engagement remains patchy
While the Act is high on the agenda for procurement leaders, with 55% of CEOs saying so, just two in five Heads of Procurement feel they are in a position where their senior teams are fully engaged. While ambition is evident, there exists a wide variety of operational readiness.
Tarryn Kerr, MD of Procurement Services at the Commercial Services Group, explains: "Embedding a culture of transparency, collaboration and social value demands visible commitment from the top. Without it, procurement reform risks being seen as an operational task rather than an organisational priority."
Four in five (80%) organisations have plans to collaborate under the new Act to obtain stronger outcomes in service consistency, community impact and value for money. But, a third of respondents feel unsure if they have the resources, while 32% state a lack of internal expertise as a barrier.
One of the Act's primary objectives is to drive economic development; this could limit an organisation's ability to deliver on this.
Tarryn adds: "Effective collaboration will be key to creating meaningful change, particularly in high-pressure environments. Organisations using frameworks, such as those provided by our procurement services, benefit from a fully-compliant and pre-vetted route to market which saves time and money while ensuring quality, transparency and best value for the public purse.
"Essentially, they can benefit from improved collaboration whilst ensuring compliance."
Environmental and social goals face scepticism
Despite the legislation's aim to support both environmental and social objectives, and with resources available to secure energy resilience and achieve ROI, perception is still a barrier.
Only 42% believe it will significantly advance their net-zero ambitions and 24% expect little or no impact on equity and inclusion.
Wallace Sampson OBE, Member of Commercial Services Group's Strategic Public Sector Advisory Group, adds: "This is an ideal opportunity to embed procurement reform into transformational change strategies. Local Government Reorganisation (LGR) presents an early opportunity to embed the new Act.
"A strengthened strategic approach to procurement can unlock significant potential for transformational change, especially through compliant frameworks established early in the transformation journey of the new councils.
"Sustainability challenges for local government, as well as the wider public sector, require organisations to have an executive-level laser-like focus on their procurement processes, if they are to take full advantage of the new Act."
However, while concern surrounding strategic prioritisation remains, 84% of respondents are confident in their ability to deliver on NPPS priorities.
More than three-quarters (76%) also see the Act as a genuine opportunity for change, rather than simply a compliance exercise.
