Draft Procurement Act 2023 (Specified International Agreements and Saving Provision) (Amendment) Regulations 2026

Mike Wood Excerpts

Monday 9th March 2026 General Committees

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

It is a pleasure to serve under your chairmanship again, Sir Desmond. The Minister will be aware that we have some concerns about part of the UK-India agreement, but those concerns do not apply to the provisions on public procurement, and as such we support the measures in the regulations.

In effect, the regulations add the UK-India agreement to schedule 9 to the Procurement Act 2023 introduced by the previous Government. That will mean that suppliers from India that fall within the scope of the agreement will be entitled to participate in relevant UK public procurement processes on the same basis as UK suppliers.

We are proud of many of the changes brought in by the last Government through the Procurement Act to boost the UK economy, including the move from the EU’s most economically advantageous tender system to our own, broader, most advantageous tender system. That subtle change of language has massive real-world implications. It lets contracts reflect real value and not just price. Instead of the rigid focus on the lowest price under the previous EU-derived rules, under our new procurement framework we can consider value more holistically, including social and local benefit; instead of restrictive procedures, there is more competitive flexibility, so that buyers can design the process; and instead of it being difficult to exclude bad actors, as was the case under the previous system, robust powers are in place to debar suppliers on national security grounds. I am sure that the Minister will confirm that those powers will still apply under the regulations.

Importantly, buyers can now give significant weight to bids that create jobs in their specific region or the sector for which they are responsible, and for the first time, public bodies are publishing key performance indicators for major contracts. If a supplier fails to deliver for the public, it can be held to account and potentially barred from future work. Given those positive changes, it makes sense to apply the new system to procurement covered by the UK-India trade agreement.

Of course, due to the transitional provisions currently in place, some procurements continue to be governed by earlier legislative frameworks, including the Public Contracts Regulations 2015 and the Utilities Contracts Regulations 2016. That is one of the reasons why we agree that the regulations before us, which will ensure that the procurement chapter of the UK-India agreement can also apply to procurements still conducted under those earlier regimes, are necessary.

In practice, that means that economic operators benefiting from the agreement will be entitled to the same treatment as UK suppliers in procurements carried out under framework agreements, dynamic purchasing systems or qualification systems that remain subject to the previous rules. The amendments will apply only to procurements commenced after the UK-India agreement enters into force; procurements already under way will not be affected.

The Government have indicated that a full impact assessment has not been produced on the basis that the regulations are not expected to have a significant impact on the private, voluntary or public sectors. Given the scale of public procurement in the United Kingdom, it would be helpful if the Minister provided some clarity on a few points.

First, what assessment has been made of the value of procurement opportunities in the UK that will now be accessible to Indian suppliers under the agreement? On the flip side, can the Minister further lay out what reciprocal access UK businesses will gain to public procurement markets in India, and what practical support will be available to help UK firms, particularly small and medium-sized enterprises, to take advantage of those opportunities? Thirdly, could he clarify the expected timetable for the agreement to enter into force and, therefore, for these provisions to begin applying in practice?

The regulations are, in many respects, technical in nature, but they form part of the broader implementation of the UK-India trade agreement and therefore could have significant implications for access to public procurement markets, both here in the UK and abroad, so it is right that the Committee carefully scrutinises how they will operate in practice. I look forward to the Minister’s response.