Draft Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025

Georgia Gould Excerpts

Wednesday 5th February 2025 General Committees

[The Parliamentary Secretary, Cabinet Office (Georgia Gould)]

I beg to move,

That the Committee has considered the draft Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025.

It is a pleasure to serve under your chairship, Mr Mundell, for what is my first Delegated Legislation Committee.

This statutory instrument represents the final legislative step in implementing the Procurement Act 2023, which introduces a new public procurement regime responsible for over £385 billion in public contracts annually. The new regime, set to come into force on 24 February 2025, aligns with our mission-driven approach and supports the Prime Minister’s commitment to economic growth by establishing a simpler and more transparent system.

In order to fully implement the Procurement Act, we must first ensure that procurement references in other pieces of legislation are updated to align with the new regime. The draft regulations make the consequential amendments that are a routine aspect of implementing primary legislation. They also make necessary updates to the schedules to the Procurement Act to ensure compliance with our international obligations. They amend schedule 9 to the Procurement Act to update the list of specified international agreements that identify treaty state suppliers for the purposes of the Act. The amendments will update the UK’s market access coverage in our trade agreements with Ukraine, Moldova, Georgia, Kosovo, North Macedonia and Albania, removing access to contracts for healthcare services and enabling the Health Care Services (Provider Selection Regime) Regulations 2023, introduced in January last year, to work as intended.

Further technical amendments include updating the list of central Government authorities in the Procurement Act. In addition to those technical adjustments, the draft instrument enhances transparency in public procurement. It also updates how key performance indicators are handled in contract details and performance notices. Finally, it outlines how to calculate whether the sale of excess electricity, gas or water, produced as a by-product of another non-utility activity, falls under the Act where the operator wants to sell it to a network.

In summary, the draft regulations are essential to ensure that the existing legislative framework functions as intended, while facilitating a transparent, efficient and effective public procurement regime. The final legislative step in implementing the 2023 Act will strengthen the system for public procurement across the UK, benefiting businesses, taxpayers and the public sector. I hope that all hon. Members will join me in supporting and approving the regulations today.

--- Later in debate ---

[Georgia Gould]

I am delighted to engage in my first such debate with the hon. Gentleman. We are absolutely clear that the Procurement Act and the new national procurement policy statement have to support economic growth, small and medium-sized businesses and innovation. I have been engaging heavily with SMEs and the message they have given is that they can find Government procurement as it is slow and burdensome, and they often do not feel that they have a place at the table. I believe that the changes we have made to the NPPS strengthen the commitment to small businesses that is absolutely at the heart of our agenda.

The hon. Gentleman referenced the Employment Rights Bill. Obviously, that is a completely different piece of legislation and is not relevant to today’s regulations, but decent jobs are really important in supporting economic growth. The Procurement Act is very much focused on growth and supporting SMEs, and that is what we will take forward. I am happy to have further discussions on the other points he raised.

Question put and agreed to.