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 monitor the potential impact of the (a) National Procurement Policy Statement and (b) Employment Rights Bill on small-to-medium-sized business participation in public procurement.

The National Procurement Policy Statement supports Small and Medium-sized Enterprises (SMEs) and Voluntary, Community and Social Enterprise (VCSEs), giving them greater opportunities to win public contracts by instructing contracting authorities to maximise their spend with these organisations. As part of this I have 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.

To support implementation of the NPPS in central government, we have announced new rules requiring all government departments and their executive agencies and non-departmental public bodies to set three-year targets for direct spend with SMEs from 1 April 2025, and from 1 April 2026 for VCSEs, and publish progress annually. This will drive greater transparency and accountability for increasing numbers of SMEs and VCSEs delivering public contracts, supporting local economic growth and innovation and creating jobs in local communities up and down the country.

To support implementation of the Procurement Act, the Government has provided a programme of free training to procurement teams on its provisions and flexibilities. Additionally, the Government hosted a series of supplier webinars and published instructional videos and user-manuals, aimed specifically for suppliers, to help them understand the key changes including how to use the new central digital platform - working with trade associations and other business representative organisations to help distribute the materials.

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