How Are Leaders Reacting to the UK's Procurement Act Reform?

The Public Procurement Act 2023, which takes effect in February 2025, aims to reform how public money is spent across the UK.

A new survey of procurement professionals shows many feel underprepared and some still don’t fully understand what the legislation demands.

While many leaders back the ambition, the road to compliance and transformation appears uneven.

Commercial Services Group, which provides procurement services to the public sector, commissioned the research.

More than 500 procurement leaders and senior executives were surveyed across local government, health, housing, education and emergency services. Their responses reflect both an appetite for improvement and a wariness over capacity and clarity.

Just 28% of those surveyed feel ready to meet the Act’s transparency requirements. One in three admit to having little or no knowledge of the Act itself or the aims of the National Procurement Policy Statement (NPPS), which underpins it.

Among the sectors polled, local government stands out as the most prepared. The NHS and education sectors, meanwhile, express more uncertainty.

Senior engagement varies across sectors

Although procurement leaders have the Act in their sights, not everyone in senior management shares the focus.

More than half of chief executives, 55%, see the Act as a priority. However, only two in five Heads of Procurement feel that their executive teams are fully on board. This mismatch raises questions about whether reforms will get the backing needed to succeed.

Tarryn Kerr, Managing Director of Procurement Services at Commercial Services Group, warns: "Embedding a culture of transparency, collaboration and social value demands visible commitment from the top.

"Without it, procurement reform risks being seen as an operational task rather than an organisational priority."

Despite doubts, the appetite for collaboration is strong. Four in five organisations plan to partner with others under the new Act to achieve better outcomes. These include improving service consistency, making a stronger impact on communities and securing better value for money.

That said, a third of respondents question whether they have the resources to deliver. Another 32% cite a lack of internal expertise.

This is crucial, given one of the Act’s key aims is to support economic development through procurement. Organisations may struggle to meet this goal if they're not equipped to act effectively.

Tarryn adds: "Effective collaboration will be key to creating meaningful change, particularly in high-pressure environments. Organisations using frameworks, such as those provided by our procurement services, benefit from a fully-compliant and pre-vetted route to market which saves time and money while ensuring quality, transparency and best value for the public purse.

"Essentially, they can benefit from improved collaboration whilst ensuring compliance."

Sustainability goals still face resistance

The Act also aims to support environmental and social outcomes, but here too the response is mixed. Just 42% believe the Act will help advance net-zero targets, and fewer still - only 24% - think it will do much to improve equity and inclusion.

This raises the issue of perception. Even where policy levers exist, not all organisations appear convinced they’ll work in practice.

Wallace Sampson OBE, a member of Commercial Services Group’s Strategic Public Sector Advisory Group, adds: "This is an ideal opportunity to embed procurement reform into transformational change strategies. Local Government Reorganisation (LGR) presents an early opportunity to embed the new Act.

"A strengthened strategic approach to procurement can unlock significant potential for transformational change, especially through compliant frameworks established early in the transformation journey of the new councils.

"Sustainability challenges for local government, as well as the wider public sector, require organisations to have an executive-level laser-like focus on their procurement processes, if they are to take full advantage of the new Act."

There’s confidence in some areas. Over three-quarters, 76%, see the Act as a real opportunity for change rather than a bureaucratic obligation.

Meanwhile, 84% say they feel ready to deliver on NPPS priorities, which include considerations such as value for money, transparency, innovation and resilience.

While concerns remain over leadership engagement, resource gaps and scepticism about outcomes, there’s clear appetite for improvement.

Whether that momentum can be translated into practice depends on how executive teams respond in the coming months.