By Matt Johnson, CEO of Commercial Services Group
The UK’s new Public Procurement Act came into effect in February this year, bringing bold ambitions and considerable change. But is the public sector ready to maximise the opportunity?
The Act promises to move procurement beyond box-ticking compliance, offering greater social value, better SME opportunities, and fairer, more transparent processes to benefit communities.
To explore readiness for this shift, we surveyed over 500 senior executives and procurement leaders across local government, health, housing, education, and blue light services. The mood is optimistic, tempered with pragmatism. While the purpose of the Act is clear, successful delivery will require focus, support, and access to the right training.
Confidence is high – but capability gaps persist
Despite concerns about strategic prioritisation, there is good news: 84% of respondents are confident in their ability to deliver on the National Procurement Policy Statement (NPPS) priorities, and 76% see the Act as a genuine opportunity for change rather than just a compliance exercise.
However, challenges remain. Only 28% feel ready to meet the Act’s transparency requirements, and 33% report limited or no knowledge of the Act or NPPS. While local government reported higher readiness, the NHS and education sectors were less confident. The ambition is clear, but operational readiness varies.
Is the new Act a strategic priority?
Many organisations are hopeful, but our findings suggest procurement is often being led by middle management rather than championed at board level. Although contracts started before 24 February 2025 will remain under the old regulations until 2029, now is the time to act.
Over half (55%) of CEOs said the Act is high on their agenda, yet only two-fifths (40%) of Heads of Procurement feel their senior teams are fully engaged. This matters because embedding a culture of transparency, collaboration, and social value demands visible commitment from the top. Without it, reform risks being seen as an operational task rather than an organisational priority.
Collaboration: welcome but not easy
A significant majority (80%) of organisations plan to collaborate under the new Act to achieve stronger outcomes in service consistency, community impact, and value for money. Yet nearly a third are unsure if they have the resources, and 32% state a lack of internal expertise as a barrier. Collaboration across complex sectors, such as blue light services, adds further challenges.
That said, effective collaboration can deliver big results. For example, we worked with the Maritime & Coastguard Agency (MCA) to simplify their overly complex procurement processes. New frameworks enabled direct awards and broader supplier access, leading to faster, more efficient procurement of critical safety and rescue equipment, all while staying compliant.
Smarter procurement, with the right tools and support, can make collaboration achievable, even in high-pressure environments, but it must be seen as a strategic priority.
Social value – from ambition to delivery
A key aim of the Act is to support environmental and social goals. Yet only 42% believe it will significantly advance their net zero ambitions, and almost a quarter (24%) expect little or no impact on equity and inclusion. This highlights the gap between big goals and practical delivery.
To bridge it, implementing the aims of the act quickly is imperative so the fullest extent of their benefits can be felt soonest.
Moving from awareness to action
The principles of the Procurement Act are already shaping procurement activity, and early adopters will be best placed for a smooth transition. Organisations that focus on delivering real-world outcomes, not just compliance, will stand out.
To realise the full potential of reform, public bodies will need ongoing support, practical tools, and structured frameworks:
- Managed services to fill resource gaps and provide end-to-end support.
- Frameworks that simplify procurement and reduce complexity.
- End-to-end contract management that ensures compliance and focuses on value.
- Tailored training to close the readiness gap and build sector-wide confidence.
The new Act isn’t just about compliance, it’s a chance to deliver smarter, more purposeful procurement that provides lasting value for communities.