Procurement Bill: Consultation on Draft Regulations

Monday 19th June 2023 Written Statements

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

One in every three pounds of public money—over £300 billion a year—is spent on public procurement. By improving the way public procurement is regulated, the Government can save the taxpayer money and drive benefits across every region of the country.

Following the UK’s exit from the EU, we now have an opportunity to develop and implement a new procurement regime. The Procurement Bill will help deliver the Prime Minister’s promise to grow the economy by creating a simpler and more transparent system that will deliver better value for money, reducing costs for business and the public sector.

The Government want to make it easier for small businesses to work with the public sector by ripping up unnecessary rules and tackling late payment in the supply chain. We will ensure that all public bodies consider small and medium-sized enterprises when designing their procurements.

Following wide-ranging public consultation and stakeholder engagement, and close working with colleagues in the devolved Administrations, we have brought forward legislative proposals to establish the new regime. These measures and the training we will roll out to support them will deliver greater value for the public purse, from huge infrastructure projects to services by local councils.

In support of the Bill, which last week completed Third Reading in this place, I am launching a public consultation on the draft implementing regulations that will form part of the new regime. This consultation, which is highly technical and not seeking views on policy development, will be split into two parts, with the first part of the consultation remaining open until 28 July. The first part of the consultation, announced today, focuses on policy areas that require specific detail, such a calculation of thresholds, or lists of services or organisations, in secondary legislation. The forthcoming second part will address the transparency provisions and notices that will be used by contracting authorities to fulfil their legal requirements under the Bill. The second part will also include information on the proposed approach to transitional arrangements for procurements already underway at the time that the new regime enters into force and the position on other legislation that will need to be amended in order for the full provisions of the Bill to take effect. I expect to launch the second part in July.

The consultation we are publishing today, and laying in Parliament, gives everyone an opportunity to help shape public procurement for the future and I wish to encourage all involved in public procurement to have their say.

[HCWS859]