The Procurement Act 2023 and what it means for SMEs

The Procurement Act 2023 came into force in February 2025 after a delayed start, and it’s now genuinely shaping how UK public bodies buy goods and services. Twelve months in, there’s enough evidence of how it’s working in practice to write something useful about what it means for smaller suppliers.

This is the headline summary, not legal advice. If you’re preparing a specific bid, consult a procurement lawyer. But the broad strokes are worth understanding even if you’ve never bid for public sector work before.

What changed

The Act replaces a stack of EU-derived procurement regulations with a single, simpler framework. In practical terms there are four changes most SMEs notice. First, the procedures have been streamlined — instead of the previous six-or-seven options, there are now broadly three: open, competitive flexible, and competitive negotiated. Second, the system is more transparent: there’s a central digital platform where opportunities, awards, and supplier performance information are published. Third, contracting authorities have explicit obligations to consider SMEs and to break larger contracts into smaller lots where reasonable. Fourth, the focus on social value, the environment, and SME participation is built into the legislation rather than bolted on through policy notes.

What it means for smaller suppliers

The intention is to make public sector work more accessible to SMEs. The actual experience varies considerably depending on which contracting authority you’re dealing with. Central government departments tend to be more rigorous about implementation. Local authorities and arm’s-length bodies vary widely in how the new rules are landing.

Three practical observations from suppliers we’ve spoken with this year:

The single digital platform — Find a Tender — is genuinely useful. It’s worth setting up alerts even if you’re not actively bidding, just to understand what’s being procured in your sector. The volume of opportunities visible is higher than it was under the previous regime.

The new “competitive flexible procedure” allows authorities to design bespoke procurement processes. This is a double-edged sword for suppliers. It can mean shorter, more relevant processes. It can also mean unfamiliar formats and shifting goalposts. Read the procurement documents carefully and don’t assume past bidding experience translates.

Social value and ESG continue to matter, but how they’re scored is more transparent. Suppliers who can demonstrate genuine credentials — not just glossy statements — are better positioned than they used to be.

What we’d suggest if you’re considering public sector work

Three things. First, register on Find a Tender and set up alerts for your sector codes. It’s free and it gives you a realistic picture of what’s being procured. Second, treat your first bid as a learning exercise rather than something you have to win. Bid quality improves rapidly with practice. Third, if you’re seriously committed to building a public sector pipeline, consider whether you need help with bid writing or procurement strategy — this is something CMB Core supports clients with.

Frequently Asked Questions

Does the Act apply across the UK?

It applies to procurement by UK government, English authorities, and reserved bodies in Scotland, Wales, and Northern Ireland. Scotland, Wales, and Northern Ireland have their own regulations for devolved procurement.

Are there minimum contract values?

The Act sets financial thresholds above which formal procurement procedures must be followed. Below those thresholds, lighter-touch processes apply. The thresholds are updated periodically — check the latest figures on gov.uk before assuming.

Do I need to be a registered supplier to bid?

Most opportunities require registration on the relevant procurement platform. Some larger frameworks require pre-qualification, which is a separate, more involved process.

Can CM Beyer help with bids?

We help clients with procurement strategy, capability statements, and bid-writing through CMB Core. For specific live bids we generally partner with specialist bid-writing firms — get in touch if you’d like an introduction.