Around £300bn – almost a third of government’s annual budget – is used to buy goods that help the public sector achieve its policy and service aims. The rules for how public sector bodies buy these items are about to undergo a major change when the Procurement Act 2023 comes into force in February 2025. The act, designed to create a more efficient, transparent and flexible system, seeks to meet the needs of the public sector and its suppliers while promoting economic growth, sustainability and social value.
To help civil servants navigate the changes and realise the opportunities they present, Civil Service World and CCS hosted a webinar with senior officials who have been closely involved in preparations for the new landscape. Lindsay Maguire, deputy director for procurement reform at the Cabinet Office, gave an overview of the main changes and purpose behind the reforms, while Andie Brookes, head of policy implementation at CCS, offered hands-on advice from an organisation which has already spent several years preparing for the changes. The webinar is available to watch on-demand.
Flexibility, transparency, and innovation
Maguire explained that the UK’s departure from the EU provided an opportunity to rewrite procurement rules, tailoring them to national needs and priorities. The new legislation, she explained, is built around three core principles: flexibility, transparency, and encouraging innovation. “We’ve heard the feedback: procurement is slow, bureaucratic, and full of red tape. But what we’re aiming for is a system that allows us to be more flexible and efficient, so procurement can become an enabler of innovation, not a blocker.”
She stressed that while the reforms present the opportunity for procurement professionals to have more strategic conversations and try different commercial models, they will not spell a complete overhaul of all procurement processes, but rather provide flexibility where it is most needed while maintaining efficiency for routine purchasing activities. “There's lots of things that we buy that are price driven in commoditised markets, which don’t need a three-stage procurement, but a very straightforward set of timescales and requirements to navigate that procurement,” she said.
Another key pillar of the reforms is ensuring greater visibility of government spending to enhance public confidence. “We want to show our commitment to taxpayers by being transparent about what we’re buying, why we’re buying it, and how much we’re spending,” Maguire said. This enhanced scrutiny, she explained, will also give the government better control in excluding suppliers that pose risks, particularly in sensitive areas such as national security.
A project of change
As the UK’s biggest procurement agency, offering services to the whole of the public sector, it's not surprising that the Crown Commercial Service is leading the way when it comes to preparing for the changes. Brookes said she realised as early as 2020, when the government's initial consultation was completed, that the overhaul "couldn't be handled as a side project".
In October 2022, CCS set up a project team tasked with overseeing the transition. The team spent the first six months conducting in-depth discovery work to understand CCS’s existing 'as-is' state and what needed to change. “We reviewed every single process, updated our guidance, and mapped out how we’ll operate under the new regime. It’s been a huge effort,” she said, adding the findings from this phase informed the detailed implementation plan.
CCS has relied on the ADKAR change management model, which stands for Awareness, Desire, Knowledge, Ability, Reinforcement, to manage the transition. Brookes explained: “This framework has helped us make sure our people not only understand why the changes are necessary but also feel confident and capable of applying the new procedures.”
Brookes told webinar attendees that to avoid disrupting business-as-usual activities, CCS had divided the work into five key workstreams: people and capability, ways of working, systems, guidance, and commercial tools. “By breaking down the work into these focused areas, we’ve been able to tackle each element of the change in a systematic and manageable way.”
The project team has also taken a proactive communication approach, using newsletters, roadshows, and other channels to raise awareness. “We’ve spent three years communicating these changes to our staff. It’s not just about compliance; it’s about getting everyone on board and ready to make the most of the new opportunities,” Brookes explained.
CCS’s approach is aimed at balancing the need for compliance with opportunities for innovation. “This reform gives us the flexibility to innovate, but we need to make sure that the solutions we create are not just ambitious but also workable,” Brookes said, adding that the work is about finding the right balance between creativity and practicality.
Managing cultural shifts in procurement
Both Maguire and Brookes stressed that if the new act is to achieve its aims, the reform will need to go beyond procedural changes and transform how procurement is viewed and managed across government. A key challenge will be overcoming resistance to change and helping teams across departments adopt new ways of working.
“This isn’t just a change for procurement teams,” Brookes said. “Contract managers and service users will need to behave differently under the new regime. They may not have seen themselves as part of the procurement process before, but now they will play a crucial role in ensuring contracts are managed effectively.”
Maguire noted that risk aversion and governance structures have historically held back innovation. “We need to tackle these barriers head-on,” she urged. “Teams need to break free from defaulting to what they know and be open to experimenting with different procurement models. This reform provides the tools to do so.”
Both speakers encouraged procurement professionals to seize the flexibility offered by the new regime to innovate. Maguire urged teams to consider how they can work more closely with suppliers to find the best solutions: “The real benefit will come from using the new tools to get better outcomes. I want procurement teams to think strategically, to consider what they can do differently, and to share those successes across the sector,” she said.
While the Procurement Act 2023 represents a significant shift, it’s important to remember that this is a long-term change, and organisations shouldn’t expect an immediate overhaul. “It’s not going to be a big bang,” Brookes said. “We’ve got contracts that will continue under the old regime, so we’ll be managing both systems for some time. This is about being prepared and making the most of the opportunities as they come up.”
Maguire echoed this sentiment, urging public sector bodies to focus on areas where the new regime can deliver the most value. “I understand that capacity is an issue, so concentrate your efforts on areas where you can really drive benefits. The key is to think strategically and start making small changes that will make a big impact over time.”
The Procurement Act 2023 offers a once-in-a-generation opportunity to reshape public procurement in the UK. Success will depend on careful planning, effective change management and a willingness to embrace new approaches. While the transition may take time, the potential benefits – greater transparency, increased efficiency, and the flexibility to innovate – make this a journey worth taking. As Brookes reassured the webinar’s audience: “It’ll be fine – just breathe and take it one step at a time.”
Get ready for February 2025
The implementation of the Procurement Act 2023, originally due to come into force in October 2024, is now expected on 24 February 2025. Maguire explained the delay was needed to allow the new government to review and align the reforms with their priorities. Specifically, it allows ministers to redraft the National Procurement Policy Statement, which sets out priorities that all contracting authorities must consider. “When the election was called back in May, we absolutely were on track for an October go-live,” she said. “Procurement does feature quite heavily in the new government's manifesto, and they wanted to make sure that we were going live with a regime that fully met their requirements and vision for procurement."
A stakeholder survey seeking views on changes to the NPPS will run until 7 November.