Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, with reference to the National Procurement Policy Statement on 13 February 2025, what discussions his Department has had with representatives of small-to-medium sized enterprises on the potential impact of the (a) National Procurement Policy Statement and (b) Employment Rights Bill on the administration of businesses.

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.

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, businesses and civil society. 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 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.