Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, with reference to the National Procurement Policy Statement, published on 13 February 2025, what steps he is taking to ensure that enhanced procurement obligations do not increase public spending.

The National Procurement Policy Statement (NPPS) sets out our vision for public procurement unlocking the full potential of the £400 billion spent annually on public procurement to drive sustainable economic growth and maximise social value to support mission delivery. We are clear that we want public contracts to deliver value for money in procurement through stronger expectations around commercial capability and contract management. The NPPS asks contracting authorities to ensure they have the appropriate procurement and contract management skills and capability necessary to deliver public contracts and encourages the use of collaborative procurement frameworks, where appropriate, to deliver value for money. To support this, a new online register of commercial agreements will increase visibility of frameworks and fees, curbing excessive profits.

The Cabinet Office undertook a programme of stakeholder engagement to inform the development of the NPPS. This included an online survey which received over 436 responses and a series of roundtables with key stakeholders from contracting authorities, small businesses and civil society. We have also met with the Federation of Small Businesses, Enterprise Nation and a large number of SMEs across various sectors to discuss how the government can continue to break down barriers to procurement opportunities through the new procurement regime, supporting jobs and growth across the country. Contracting authorities are best placed to determine how the strategic priorities set out in the NPPS can be incorporated into their overall procurement strategies and individual public contracts.

An Impact Assessment in relation to the Procurement Act was published in May 2022 and can be found at: https://bills.parliament.uk/publications/46429/documents/1767.

The Department for Business and Trade leads on the Employment Rights Bill. Guidance will be issued as appropriate in due course. Impact assessments undertaken for the Employment Rights Bill can be found at: https://www.gov.uk/guidance/employment-rights-bill-impact-assessments