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

Richard Holden Excerpts

Wednesday 5th February 2025 General Committees

[Mr Richard Holden (Basildon and Billericay) (Con)]

It is a pleasure to serve with you in the Chair, Mr Mundell. It is also a delight to be with the Minister who is losing her DL plates today—[Hon. Members: “Oh!”] I thought that was pretty good with two minutes’ notice.

We will not be opposing the draft instrument. The core Procurement Act was introduced under the Conservative Government to consolidate and simplify existing procurement legislation, improve efficiencies throughout the process and improve transparency throughout the procurement pipeline. There remain a number of big challenges with public procurement, which represents hundreds of billions of pounds of public body expenditure every year. I hope that the legislation coming into force in February will help to tackle those challenges.

Of course, I regret the fact that the Government have delayed the implementation of the measures contained within the Procurement Act, and I hope that their new national procurement policy statement will not interfere with its core efficiency and cost improvement measures. I want to ask the Minister when exactly we can expect the updated NPPS. I also want to briefly raise a couple of concerns about the measures that the Government have previously indicated will be in the updated statement.

The Labour party’s make work pay plan, which sets out the most exact information we have as to the content of the updated NPPS, suggests that the new principle of procurement will be based on learning from the Social Partnership and Public Procurement (Wales) Act 2023. As the TUC has pointed out, that Act means that public bodies must consult and work with unions and:

“Attempts to shirk this duty, or lock unions out from decision-making can no longer be done without consequence”

securing the

“place of trade unions as essential partners in public policymaking.”

Is it the Government’s view that the NPPS, implemented through the Procurement Act, will ensure that trade unions cannot be locked out of decision making without consequence?

We also know that the Government have set out their intention for a social value council, as in Wales. I would appreciate some further clarity on the expected make-up of the council.

As the Minister will know, public procurement involves not just large businesses that have the capacity to maintain a stringent Government social value and trade union requirement but lots of small businesses that can offer fitting and cost-effective services and products but that might not have the broader capabilities to uphold some of those tight requirements. Previously, the Minister appeared to confirm to me that small enterprises would be exempt from those requirements and I would appreciate her confirmation of that, as well as her understanding of how exactly that will fit in to the cost-saving and efficiency measures set out by the Act, in which small and medium-sized businesses can play a central role. Anything in that regard would be appreciated.

We can all appreciate the need for public procurement reform and the fact that the Government are taking forward this work, which was initially set out by the previous Conservative Government. However, the Government should offer a little more certainty and clarity about the extent of trade union involvement in the public procurement pipeline and the extent to which they will preserve the potential for small and medium-sized businesses to have a fair go at the bidding process and involvement in that pipeline. If the Minister will write to me on those points, I will be happy not to oppose the regulations.