Evolving public sector procurement: The Procurement Act 2023, Local Government Reorganisation and beyond
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Procurement

This article from Procurement Services looks at how authorities can streamline supply bases, manage procurement activity effectively and maintain clear oversight during periods of organisational change.

The Procurement Act 2023, which came into force on 24 February 2025, represents the most significant reform to UK public procurement in a decade. The Act is designed with a simpler, more flexible regime, intended to enhance transparency, accessibility and value for money. Key changes include the introduction of the Competitive Flexible Procedure, providing contracting authorities with greater discretion to design procurement processes; the establishment of a new Procurement Review Unit to improve oversight; and an emphasis on assessing overall value rather than focusing solely on cost. The Act also supports a digital-by-default approach with all procurement opportunities published on the Central Digital Platform, improving consistency and visibility for suppliers.

As Procurement Act 2023 experts, we are always keeping a close eye on how the public sector is navigating this shift, so let’s see what was delivered during the first 12 months.

At six months
Six months after implementation, Commercial Services Group conducted research with over 500 senior executives and procurement leaders across local government, health, housing, education and blue light services. Results showed cautious optimism alongside capability gaps.
76 per cent viewed the Act as a transformational opportunity, signalling enthusiasm for change rather than reluctant compliance.

However, only 28 per cent felt fully prepared for the Act’s enhanced transparency requirements.
43 per cent said government-provided training and resources had gaps, indicating that while organisations understood the “what,” many felt under-equipped for the “how.”
16 per cent were unaware of any support at all, highlighting a breakdown in communication and guidance dissemination.

33 per cent of individuals with procurement responsibilities had limited or no knowledge of the Act, suggesting even key staff were not uniformly prepared.

Leadership confidence also exceeded operational readiness: 49 per cent of senior leaders felt prepared, compared with only 33 per cent of procurement professionals, who expressed more concern around capability and implementation.

This pointed to an early disconnect between strategic intent and organisational capability. Senior leaders viewed the reform through a strategic lens, while procurement professionals were already encountering the realities of new processes and pressures.

At eight months
In October 2025, Procurement Services’ managing director, Tarryn Kerr was invited onto the Delta eSourcing podcast to talk about “Procurement Act 2023: How Procurement Teams Are Adapting.”
Take a listen to the full podcast here.

As the public sector shifted from early optimism, eight months on, the practical realities of delivery were concerning some organisations. It was noted, “optimism is being tempered by wider challenges… procurement isn’t operating in a vacuum; it’s sitting inside sectors already under immense pressure,” making the new requirements harder to absorb in practice. 

“Collaboration is going to be key… Challenges to collaboration are financial constraints, coordination between parties, and complexity of contractual agreements… at a time when resource is short. We’re not all going to know it on day one… it’s about learning from others and gaining shared experience.”

The Act encourages innovation, negotiation and deeper market engagement, but this requires cultural change as much as procedural change.

How the sector is adapting
At Procurement Act Live in October 2025, Procurement Services discussed the practical impact of implementing the Act during the session ‘Living with the Act – How are Procurement Professionals Adapting?’, joined by Andy Bruen from Softcat and Shaun Lay from London Borough of Newham.

The audience identified the biggest challenges: 9 per cent said financial challenges; 25 per cent voiced time constraints; 50 per cent declared lack of resource; and 16 per cent named regulations.

Organisations also highlighted engagement, compliance and investment as key priorities for the next two years.
Nicola Monk, Divisional CEO Energy & Environment/Procurement & Partnerships, Commercial Services Group, also took part in the panel Transparency and Accountability: Has the Act Delivered?

The panel reflected on the shift in contract management, as teams adapted to mandatory performance and termination notices and strengthened reporting processes. Accountability mechanisms, such as public performance ratings and exclusion powers, were also reinforcing delivery standards.
 

The next twelve months: keeping councils safe, legal and operating while everything else is changing
We’re 15 months on, and one thing is clear: with the right support, the next 12 months can shift from pressure to progress.

With local government reorganisation on the horizon for many authorities, procurement teams are facing significant change. Authorities will need to map legacy supply chains, manage contract novation and align contract portfolios, while ensuring the new authority is safe and legal for vesting day. These challenges will be intensified by limited capacity, requiring careful coordination of procurement resources against key milestones.

However, reorganisation also presents an opportunity to take a more strategic, place-based approach, maximising value for money and enhancing social value. Councils that plan early and make effective use of contract data will be best placed to maintain service continuity, unlock efficiencies and deliver on local priorities.

Procurement Services can support authorities throughout this process by helping them streamline their supply base and develop resilient, compliant procurement models that are ready for the future. Their Procurement Delivery and Lifecycle Contract Management teams provide the public sector with a full range of services. These include expert guidance for in‑house processes, covering everything from reviewing documentation and advising on scoring methods to shaping presentations, managing evaluations and overseeing contract awards. They also offer end‑to‑end delivery of compliant procurement across PCR2015/PA23, whether this involves Direct Award, Further Competition, the Open Procedure or the Competitive Flexible Procedure.

In addition, they provide comprehensive management of an organisation’s procurement function, which includes running compliant processes and delivering ongoing contract management. They offer contract management support to strengthen oversight during transition, covering contract registers and data validation, milestone and risk tracking, supplier performance monitoring and governance that gives authorities clear visibility of key obligations, dependencies and decisions. They also deliver practical LGR transition support across contract mobilisation and rationalisation, helping authorities review inherited arrangements, align terms and service models where appropriate, plan novations and handovers, and maintain supplier continuity while protecting compliance and service delivery.

 

Further information

To see how we can help you, please contact procurementservices@csltd.org.uk or 0808 281 9439. Alternatively, visit www.procurementservices.co.uk to learn more.