UK Cabinet Office announces statement on Procurement Act 2023

The UK Cabinet Office has just announced, in a brief statement that the date for the Procurement Act 2023 to enter into force has been postponed. At less than 2 months from the planned “go live” date which was slated for 28 October 2024, in a surprise announcement, the new Government has decided to push this back.

The reasoning for the decision stems directly from the change in administration following this year’s General Election.

The previous Government published a National Procurement Policy Statement on 13 May 2024 (National Procurement Policy Statement (publishing.service.gov.uk)) but the new administration has stated that the statement does not meet the Government’s ambition for procurement reform. The Labour Party Manifesto 2024 contained a number of promises related to procurement that it may now seek to include in a new statement and/or wider package of reforms. These include:

• shutting down the link between ministers and an inside track for public contracts
• the creation of a Police Efficiency and Collaboration Programme which would standardise police procurement and establish shared services
• developing a new NHS innovation and adoption strategy in English to offer a plan for NHS procurement and a clearer route to get products into the NHS; and 
• reforming defence procurement through a new strategy which will establish new long term partnerships and reducing waste

The Cabinet Office has announced that the launch of the Procurement Act 2023 will now occur on 24 February 2025 to allow time for the new Government to prepare and consult on a new National Procurement Policy Statement. It remains to be seen whether any substantive changes will be made to how the regime will operate but we will monitor any further developments between now and the new expected “go live” date. 

View the Cabinet Office statement here.