The Procurement Act 2023 was due to go live on 28 October 2024. However, a Written Ministerial Statement was published in Parliament today announcing that the Act will now commence on 24 February 2025. Until then, the legislation currently in force (including the Public Contracts Regulations 2015) will continue to apply.
The reason given for the delay is the government’s desire to redraft the National Procurement Policy Statement (NPPS). The NPPS sets out the government’s strategic priorities for public procurement and how contracting authorities can support their delivery. As mandated by section 13 of the Procurement Act 2023, all contracting authorities have to have regard to it when conducting public procurements. The previous government published its NPPS in May 2024. However, the new government has now decided to replace that with its own statement to reflect their priorities. The delay is stated to be caused by the time needed to complete that task. The Government has suggested that its own NPPS will be an ambitious statement which drives the Government’s missions, aligned with its wider mission-led approach to Government. This could, in our view, offer opportunities for mission-led organisations such as charities and social enterprises to work with Government.
The new NPPS will not alter the substantive law contained in the Procurement Act 2023 (or the Procurement Regulations 2024) – although it is likely to alter the strategic priorities to which contracting authorities will need to have regard when they procure. Unless the Government choose to make wider changes to the Procurement Act 2023 and associated regulations than flagged here, the delay should not have an effect on the substance of the new law and may even provide both contracting authorities and suppliers a little more time to prepare for the changes ahead. However, the extent of any changes remains to be seen.
However, the delay may cause some difficulties to any contracting authority that has already planned to commence a procurement exercise under the Procurement Act 2023 between 28 October 2024 and 24 February 2025 – and to those suppliers who were intending to bid in such procurements.
Please don’t hesitate to contact us if that applies to your organisation and you would like advice on how to proceed or if you have any other concerns about the delay to commencement of the Act.