The Procurement Act 2023 changed the rules for how public bodies in the UK buy goods, works and services from 24 February 2025. It is designed to make bidding simpler and, according to the government, particularly benefits small businesses, start-ups and social enterprises. This guide explains what changes for SMEs, based on the official guidance for suppliers.
What Changes for SMEs
- Simpler Bidding: the Act aims to make it easier to bid, negotiate and work in partnership with the public sector, including a new “competitive flexible” procedure.
- More Open Frameworks: commercial frameworks are meant to be more open, so prospective suppliers are not shut out for long periods. Dynamic markets replace dynamic purchasing systems.
- Fewer Barriers: buyers must consider the barriers small and medium-sized enterprises may face and whether they can be removed or reduced.
- Prompt Payment: stronger provisions mean more public sector contracts offer 30-day payment terms throughout the supply chain.
- Consistent Feedback: public bodies must provide bid assessments to suppliers for final tenders.
Find a Tender and the Central Digital Platform
The Act’s central digital platform is an enhancement of the existing Find a Tender service, at the same web address on GOV.UK. It is free to search for contracts and to register, and you can set up alerts for tenders that interest you.
Suppliers register once with their core business details, then share them with buyers and keep them up to date. SMEs can say that they are an SME when they register. Suppliers already on Find a Tender needed to re-register when the new service started.
Greater Oversight
A Procurement Review Unit now oversees public procurement. It includes the Public Procurement Review Service, a Procurement Compliance Service and a Debarment Review Service, and suppliers can use it to raise concerns about procurement practice and late payment.
What SMEs Can Do
- Register and Keep Your Details Current: have your Companies House number, address, accounts and details of connected people and businesses ready.
- Set Up Alerts: track the tenders that matter to your business.
- Talk to Your Customers: discuss with regular public sector customers how their forward pipelines may use the new procedures.
- Use the Official Guidance: the Cabinet Office provides summary documents, videos and webinars for suppliers.
How We Are Responding
As an SME ourselves, Auctus Management Group has been forming strategic partnerships, strengthening our bidding capabilities and using Find a Tender to monitor new opportunities across the infrastructure sector. See our partners and projects.