CONTRACT MANAGEMENT

The UK’ s public sector allocates approximately £ 350bn annually to procurement. However, questions remain about whether this public expenditure translates into quality employment and appropriate standards. The Procurement Act 2023, introduced by the Conservative government to supersede the Public Contracts Regulations, implemented reforms to the exclusions framework. Over the last 12 months, the act has looked to streamline processes and ensure smaller businesses get a fair shot at competing.

At its core, the new legislation simplifies how contracts are awarded, reduces bureaucracy and places greater emphasis on social value. It outlines key reforms to public procurement designed to make the process more accessible and efficient for businesses, especially SMEs. The most significant change was the introduction of a competitive flexible procedure, which allows more negotiation between businesses and public buyers, replacing rigid frameworks.

Before the act came into effect, Karen McNamara, Business Director for Essity’ s Health and Medical division in the UK, was asked how the new Procurement Act 2023 might facilitate the adoption of value-based procurement practices in the healthcare sector.

UK PUBLIC SECTOR ANNUAL PROCUREMENT SPEND

She said:“ The Procurement Act 2023 aims to create a more transparent and flexible procurement framework. It encourages public sector bodies, including healthcare organisations, to consider factors beyond initial cost, such as quality and long-term value, when awarding contracts. This shift supports the integration of valuebased procurement practices, enabling healthcare providers to prioritise patient outcomes and overall value in their purchasing decisions.”

The reforms also improved access to commercial frameworks, preventing suppliers from being locked out long-term and reducing bureaucracy that previously disadvantaged small businesses and social enterprises.

Speaking at the time the act went live, Steve Haskew, Group Director of Sustainability and Growth at Circular Computing, described the new legislation as“ a win for Davids over the Goliaths of the business world”. Some concerns remain. Critics question whether small businesses have sufficient capacity to fulfil the new requirements, particularly regarding social value reporting.

104 February 2026