The Procurement Bill 2023, a government bill to reform public procurement, received Royal Assent on 26 October 2023 and is now the Procurement Act 2023.
The Act represents a major reform of UK public procurement law following Brexit, replacing EU-derived regulations with a single domestic framework designed to improve transparency, flexibility, and value for money.
The Act’s main provisions came into force on 24 February 2025, following a phased implementation programme across 2025–2026.
A major change to public procurement law
Following the UK’s exit from the European Union, the Government introduced the Procurement Act 2023 to simplify and modernise procurement rules that were previously based on EU law.
The Act replaces several procurement regimes, including:
- Public Contracts Regulations 2015
- Utilities Contracts Regulations 2016
- Concessions Contracts Regulations 2016
- Defence and Security Public Contracts Regulations 2011
These are now consolidated into a single legal framework governing public procurement across the UK.
The aim is to reduce complexity, increase transparency, and give contracting authorities more flexibility in how they design and run procurements.
Key features of the Procurement Act 2023 (now in force)
1) Fewer, more flexible procedures
The Act replaces the more rigid EU-derived procurement procedures with a smaller number of more flexible options, including the competitive flexible procedure.
This allows contracting authorities to design procurement processes that are more proportionate to the goods, services, or works being procured.
2) Most Advantageous Tender (MAT)
The Act replaces the previous Most Economically Advantageous Tender (MEAT) approach with Most Advantageous Tender (MAT).
This does not remove cost considerations, but allows contracting authorities to take a broader view of value for money, including:
- Price and whole-life cost
- Quality
- Social value
- Innovation
- Environmental impact
The emphasis is on overall value rather than price alone, while still requiring procurement decisions to demonstrate value for money.
3) Increased transparency and central digital publishing
The Act introduces stronger transparency requirements supported by a central digital platform for procurement notices and information.
This is designed to:
- Improve visibility of procurement opportunities for suppliers
- Standardise procurement notices and reporting
- Improve access to contract award and pipeline information
- Support reuse of supplier information where appropriate
However, it is important to note that this is not a single universal supplier registration system, and processes may still vary depending on procurement type and sector.
4) Greater transparency and reporting requirements
The Procurement Act 2023 significantly increases transparency obligations throughout the procurement lifecycle, including:
- Publication of procurement notices
- Contract award transparency
- Ongoing contract performance reporting
- Greater visibility of supplier performance and delivery
These requirements are being implemented progressively through secondary legislation and phased commencement measures during 2025–2026.
When did the Procurement Act 2023 come into force?
Although the Act received Royal Assent in October 2023, it did not take immediate effect.
- Royal Assent: 26 October 2023
- Main commencement date: 24 February 2025
- Ongoing phased implementation: 2025–2026
From February 2025:
- New procurements are generally governed by the Procurement Act 2023
- Existing contracts awarded under previous regimes continue under transitional arrangements until expiry
Transitional arrangements
The applicable procurement regime depends on when a procurement was launched:
- Procurements started before 24 February 2025 → previous regulations apply
- Procurements started after 24 February 2025 → Procurement Act 2023 applies
This means the UK is currently operating a dual-running procurement environment during the transition period.
What organisations should be considering
Organisations should be fully operating within the new regime and focusing on compliance and maturity, including:
- Updating procurement policies and governance frameworks
- Ensuring staff are trained on the new legal requirements
- Embedding the competitive flexible procedure into procurement strategy
- Strengthening contract management and performance reporting processes
- Aligning systems and processes with transparency and publication requirements
The focus is now on embedding and operating the new regime effectively, rather than preparation.
Summary
The Procurement Act 2023 is now fully operational and represents the most significant change to UK procurement law in decades.
It replaces the previous EU-derived framework with a more flexible and transparent domestic system focused on value for money, innovation, and improved public sector efficiency.
While implementation is still being phased in across 2025–2026, the regime is now active, and organisations must ensure their procurement processes are fully aligned with the new legal framework.