Lord Agnew of Oulton

Many intermediary procurement models are straightforward public contracts where there is no requirement to publish subcontracts under either the Procurement Act 2023 or the Public Contract Regulations 2015.

Where contracting authorities are awarding contracts using frameworks awarded under the Procurement Act 2023, they will need to follow the Act’s noticing provisions. In the case of most Public Contracts this will normally include publication of both a Contract Award and then a Contract Details Notice on the Find a Tender platform, which is the publicly available portal for all transparency information on procurement. Furthermore, notices contain linking information that allows notices to be connected- enabling detailed data analysis on how frameworks are being used. All this information on public procurement is in the public domain and can be searched by the citizen, free of charge in an accessible way.

Where contracting authorities are awarding contracts using framework agreements awarded under the previous procurement regime, they are required to publish an Awarded Opportunity Notice on the Contracts Finder platform.

In accordance with section 10 of the Procurement Act 2023 ("the Act"), the Procurement Review Unit (“PRU”) only has oversight of the activities of contracting authorities under the Act.

Any procurement carried out under framework agreements managed under the Public Contracts Regulations 2015 does not fall within the remit of the PRU.

Departments are responsible for their own SAMPs, and required to update these plans yearly. Guidance and tools are provided to ensure consistency and effectiveness.

In the event an updated asset plan is not produced,the Government Chief Property Officer can write to the Principal Accounting Officer alerting them to the requirement.

Last year, all ministerial departments produced an updated asset plan except the Department for Business & Trade (DBT), although plans for the offices occupied by DBT were set out in the Government Property Agency’s office portfolio SAMP. DBT will produce a plan for 2025.

By agreement, HM Treasury and Department for Education did not produce a 'stand alone' departmental asset plan but featured in the Government Property Agency's office portfolio SAMP as onboarded clients.

The information requested could only be obtained at disproportionate cost. The Infrastructure and Projects Authority publishes details on the estimated budgets and delivery timescales for each of the Government Major Projects Portfolio projects as part of its annual report, from which the change in cost and schedule between years for individual projects can be calculated.

Currently no departments have implemented the Central Employee Identifier. We will provide an update on implementation timescales in due course.

Regulation 80 (4) of the draft Infected Blood Compensation Scheme Regulations 2025 sets out that for where an overpayment of compensation is made by the Infected Blood Compensation Authority, the excess amount is recoverable as a civil debt. IBCA does not have any bespoke powers to prosecute suspected fraudulent claims, but will have the same tools as other public bodies to take action against fraudulent activity. The Public Authorities (Fraud, Error and Recovery) Bill, introduced to Parliament on 22 January 2025, proposes new powers granted to the Public Sector Fraud Authority, to be used upon referral of a case from a public body. This meets the Government’s commitment for the better recovery of money owed to the taxpayer where public money has been stolen or overpaid.

The (draft) Infected Blood Compensation Scheme Regulations 2025 do not confer any criminal investigatory powers on the Infected Blood Compensation Authority (IBCA). However, a small team is being established to intervene where there are suspicious circumstances relating to a particular case, and IBCA will keep the size of that team under review.

The Infected Blood Compensation Authority (IBCA) has worked closely with the Public Sector Fraud Authority to undertake comprehensive Fraud Risk Assessments for the Infected Blood Compensation Scheme. This will continue to be a key part of IBCA’s planning approach as it builds and expands its claims service.

There is no memorandum of understanding between the Infected Blood Compensation Authority (IBCA) and HMRC in place. However, the Cabinet Office worked closely with HMRC in the development of the Infected Blood Compensation Scheme, and HMRC passed regulations to exempt compensation payments from tax, as is standard for compensation schemes. The Government expects IBCA to continue to work closely with HMRC as required for the delivery of the scheme.

The Deed of Variation to contract 2887470\5, enables the transition of the Emergency Planning College (EPC) to the UK Resilience Academy from 15 April 2025 to deliver strategic national resilience training and exercising outcomes.

Given the complexities of the contract covering the management of the physical site, coupled with the provision of training services, the Authority determined that a medium-term permitted extension would allow for better development and planning for a new competitive procurement opportunity, whilst maintaining continuity of key services.

The contract provides for an extension of not less than 2-years and not more than 5-years, and does not include any financial values or thresholds. The extension does not change the economic balance of the Agreement in favour of the Contractor. International sales were covered within the Bidders' Brief as part of the original tender and subsequently the contract.

The Government is determined to ensure the £400 billion of public money spent on public procurement annually delivers economic growth, supports small businesses, champions innovation, and creates good jobs and opportunities across the country.

On 13 February the Government published a National Procurement Policy Statement (NPPS), which sets out our priorities for public procurement and maximises the impact of every pound spent. New measures to support the transformation of public procurement and to deliver on the Government’s Plan for Small Businesses includes requiring all government departments, executive agencies and non-departmental public bodies to set three-year targets for direct spend with SMEs (from 1 April 2025) and VCSEs (from 1 April 2026) and publish progress annually.

On 13 February the Government published a National Procurement Policy Statement (NPPS), which sets out our priorities for public procurement and maximises the impact of every pound spent. New measures to support the transformation of public procurement and to deliver on the Government’s Plan for Small Businesses includes requiring all government departments, executive agencies and non-departmental public bodies to set three-year targets for direct spend with small and medium-sized enterprises (SMEs) from 1 April 2025, and Voluntary, Community, and Social Enterprises (VCSEs) from 1 April 2026, and publish progress annually.

Under this new policy, departments will be responsible for publishing their own spend with SMEs on an annual basis. Departmental SME Action Plans (published from 1 April 2025) will include SME spend targets approved by departmental Ministers and any previous financial years unpublished SME spend data.

HM Treasury (HMT) and the Office for National Statistics (ONS) initiated a formal review of the sector classification in 2024 of CCS as part of their ongoing programme of assessments of the statistical and financial reporting classification of public sector bodies in the National Accounts. The ONS completed the final review in October 2024 and published the outcome on its website. It concluded that CCS’s existing sector classification as a public corporation is correct. This means that CCS will remain a Trading Fund.

https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/articles/developmentofpublicsectorfinancestatistics/september2024

Customers who have used CCS agreements in FY2022/23 were eligible to receive a payment in proportion to the amount of income collected by CCS from suppliers as result of those customers’ transactions.

Activity by customers on 231 frameworks has contributed to the distribution to individual customers, with the lowest value payment threshold being set at £1k, resulting in just under 1,500 customers being eligible to receive a payment. These payments are not part of any written agreement and are non-contractual.

CCS has not made an assessment of the administrative costs that have been, or will be, incurred in operating this scheme.

CCS is considering its opportunities to reduce its levy rates on a case by case basis as new agreements are put in place. Frameworks do not provide a level of committed spend and therefore reducing levy rates across the board would incur an unnecessary degree of risk into CCS’s financial planning. CCS’s levy rates are the lowest of all Public Sector Buying Organisations, at an average of 0.7% across the whole portfolio.

The reclassification of the sub-lease from an operating lease to a finance lease arose due to a correction in a sub-lease extension which was identified during 2023/24.

A lease end extension that was agreed by both parties in February 2023 was not clearly documented in the Deed of Variation, resulting in GPA’s Horizon system incorrectly recording the lease end date as 2033. As a result, this was accounted for as an operating lease as at March 2023.

The error in the lease end date was identified during 2023/24 when the Deed of Variation needed updating for occupancy and rent setting changes. At this point, the Horizon system was updated to reflect the correct lease end date of 2045. Correcting the lease end date changed the classification from an operating lease to a finance lease.

GPA has strengthened its control processes as a result of identifying this error. Unambiguous data tables are now attached to each occupancy agreement and signed off by both Property and Finance teams to: prevent future misinterpretation of lease terms, ensure the accurate uploading of lease data onto the Horizon system, and ensure that the accounting for leases accurately reflects the agreed lease terms.

The Procurement Act, which comes into force on 24 February 2025, will allow the Government to investigate high-risk suppliers on behalf of the entire public sector.

International debarment lists can be considered as part of a debarment investigation that determines whether an exclusion ground applies and enables a Minister of the Crown to decide whether the supplier should be placed on the debarment list.

A live debarment investigation does not prevent a supplier from bidding for public contracts or provide a basis for any further regulatory or legal action against the supplier.

The Procurement Act, which comes into force on 24 February 2025, will allow the Government to investigate high-risk suppliers on behalf of the entire public sector.

International debarment lists can be considered as part of a debarment investigation that determines whether an exclusion ground applies and enables a Minister of the Crown to decide whether the supplier should be placed on the debarment list.

A live debarment investigation does not prevent a supplier from bidding for public contracts or provide a basis for any further regulatory or legal action against the supplier.

In accordance with Part 10, the results of any investigations, including any s.109 recommendations and progress reports submitted by the contracting authority may be published, assessed on a case by case basis. Such documents will be published on GOV.UK. Any s.109 recommendations will be issued to support the contracting authority’s compliance with the requirements of the Act and follow a lessons learned approach in order for contracting authorities to reflect on their own approach to compliance and identify areas for improvement.

The Procurement Review Unit (PRU) has been established to exercise the procurement oversight powers set out in Part 10 of the Procurement Act 2023 (the Act). Part 10 comprises three provisions (sections 108-110) which provide for the investigation of a contracting authority’s compliance with the requirements of the Act, the issuing of recommendations to a contracting authority following an investigation and the publishing of statutory guidance to all contracting authorities.

Under section 108 (procurement investigations) the PRU can formally request, via notice, that a relevant contracting authority provide documents and give assistance in connection with the investigation, as is reasonable. The contracting authority has 30 days to comply with the notice.

The conducting of on-site visits to aid investigations may fall under the scope of “give assistance” and would be by mutual agreement between the PRU and the contracting authority. The circumstances giving rise to an on-site visit would have to be proportionate and relevant to the investigation. On-site audits or visits are not currently contemplated as part of a standard PRU investigation, and nor are we considering an amendment to Part 10 of the Act to provide such powers, although the procurement oversight powers and processes will remain under review as the new regime embeds.

For 2024/2025, the Cabinet Office has received 11 business cases. Of these, two have been approved to date.

The UK Government Functional Standard for Property GovS 004 sets expectations for the management of government property - including mandating a forward-looking strategic asset management plan (SAMP).

Departments are responsible for their own asset plans, and the Office of Government Property in the Cabinet Office supports their planning as part of the assurance process for the property function. Departments are asked to share their ‘working copy’ plans each year, which provides the ‘functional centre’ with an overview of their strategic intentions to help inform the development of cross-government policy and programmes.

In 2024, all but one ministerial department produced an asset plan. By agreement, some departments did not produce a stand alone plan but are featured in the Government Property Agency’s office portfolio SAMP as its clients. The Government Chief Property Officer is currently writing to all Property Leaders in Departments reminding them of their responsibility to have an up to date strategic asset management plan.

The Cabinet Office collects data on the duration and cost of inquiries from departments, inquiries’ own reports, and other publicly available information.

We have provided details on all statutory inquiries established since 2005 in the table below.

We do not hold information on projected costs; under section 17 of the Act, the procedure and conduct of an independent public inquiry are a matter for the Chair, including acting with regard to the need to avoid any unnecessary cost.

The Procurement Act 2023 does not contain financial penalties for failure to publish pipeline notices. There are sufficient remedies and processes in place to manage compliance and the Cabinet Office considers it would not be good use of public funds to introduce such a measure. As per the previous answer (HL3974), Cabinet Office is establishing the Procurement Review Unit which will play a big part in procurement oversight and any non-compliance will be monitored and potentially investigated in detail.

The Cabinet Office maintains a list of public sector dependent suppliers where the suppliers have a contractual obligation to confirm their status to us. 7 suppliers have currently notified us that they are public sector dependent suppliers. The Cabinet Office does not hold a list of all public sector dependent suppliers.

There are several methods of gaining CIPD Membership including study options, apprenticeships and experiential routes. For experiential routes, there is a central Cabinet Office contract with the CIPD for departments to utilise. The costs associated with this accreditation to date are provided below:

Departments may also utilise other methods that are available for their SCS and Grade 6/7 HR professionals to gain CIPD membership that are not included in the central Cabinet Office contract

No, the Central Employee Identifier has not been fully implemented across government. The capability to issue IDs is available but changing the legacy ERPs across government departments to hold this has been deemed inefficient with the new cluster ERPs about to commence rollout. These will be following the data standards laid out in the Nova model which includes holding the Central Employee Identifier.

This information is not centrally held and would come at disproportionate cost to the Government/Department in producing this information.

The figures for March 2024 contained in the Cabinet Office Government Major Projects Portfolio (GMPP) data predate the closure of the programme. The baseline figure of £5.5m relates to expenditure in financial year (FY) 23/24. Actual expenditure in FY 23/24 was £5.7m which represents an overspend of 3.6%. The £20m cited in the GMPP reflected the original funding for the FY.

​Information is not centrally held by the Cabinet Office on the total number of procurement frameworks currently in use across the public sector.

Crown Commercial Service (CCS) analysis suggests there are approximately 2,275 frameworks in the public sector that compete with CCS agreements.

Under the Transforming Public Procurement reforms, there will be a requirement to register procurement frameworks on the central Transparency Platform. This will enhance transparency and provide greater visibility of frameworks in operation.

The Infrastructure and Projects Authority estimates that approximately 61% of Government Major Projects Portfolio (GMPP) have been re-baselined between 31 March 2023 and 31 March 2024. This rate of change is explained by 3 reasons:

1. Major projects report a cost baseline that factors in inflation expectations. Each year these expectations have to be revised as inflation forecasts are revised, which in turn leads to a cost baseline revision.

2. Major projects are the most challenging, ambitious and innovative projects the UK has ever seen, with the scale and scope matching some of the biggest in the world. This challenge is therefore associated with a significant level of uncertainty, which leads to frequent cost baseline revision.

3. A large number of projects are at the pre-delivery stage, where they are expected, and encouraged, to change their baseline when they are in order to ensure that their plans are correctly set out at the delivery stage.

Pipeline notices are required to be published under the Procurement Act 2023 (the Act). Where a contracting authority has a third-party spend of more than £100 million, it is required to publish a pipeline notice for every procurement with an estimated value of more than £2 million.

Information published in procurement notices will be viewable, free of charge, in an accessible format. It will be clear which contracting authorities are publishing the pipeline notice in the pipeline view on the central digital platform.

The Procurement Review Unit (PRU), established to exercise the procurement oversight powers in Part 10 of the Act, may investigate a contracting authority's compliance with the Act. Non-compliance, including failure to publish a pipeline notice, may lead to an investigation and the results may be published by the PRU. The PRU may make recommendations to the contracting authority in order for them to achieve compliance. The contracting authority must have due regard to these recommendations and may be required to submit a progress report if directed by the PRU.

Further information on the GPA prior year adjustments can be found on page 165 of the 2023/24 Cabinet Office Annual Report and Accounts.

In July 2022 a head lease was surrendered and a new head lease granted with a revised rent which extended the lease term by 20 years. The right of use asset and lease liability were not remeasured to reflect the extended lease term. The financial impact of this error on the restated 2022/23 accounts was as follows:

• Right of use assets at 31 March 2023 increased by £81.5m

• Lease liabilities at 31 March 2023 increased by £76.1m

• Finance expense increased by £0.5m

• Right of use asset depreciation expenditure decreased by £0.6m

• (Gain)/loss on remeasurement of right of use assets decreased by £6.5m

In March 2023, a Deed of Variation was agreed with a client to extend the sub-lease term by 12 years to align with the head lease. The lease modification should have resulted in the GPA reclassifying the sub-lease from an operating lease to a finance lease in accordance with the GPA’s IFRS 16 accounting policies. The financial impact of this error on the restated 2022/23 accounts was as follows:

• Right of use assets at 31 March 2023 decreased by £135.3m

• Investment in sublease assets at 31 March 2023 increased by £154.5m

• Lease incentive receivable assets at 31 March 2023 decreased by £19.2m

Since 2000 there have been 7 derogations (exemptions) approved under the procedures set out under OSPAR Decision 98/3. Following an assessment of options and national and international consultations, HM Government was satisfied that leave in situ was the most appropriate solution on balance considering safety risks, environmental impact, technical feasibility, and economic and societal effects.

Details of all derogations are available via OSPAR’s public Inventory of Offshore Installations website.