What is the Procurement Act 2023—and how does this affect YOU?

4th July 2025
Policy & Process

At Tender Response, we understand that navigating new government systems can be daunting—especially when they directly impact your ability to bid for public sector contracts. With the introduction of the Procurement Act 2023, many suppliers are unsure how to access critical information like their PPON or generate a Share Code. That’s why we’ve created this practical guide—to help you stay compliant, connected, and confident in your procurement journey.

Why Was the Procurement Act Introduced?

The UK public sector spends over £385 billion annually on goods, services, and works. However, the previous procurement rules—largely inherited from EU law—were often criticised for being overly complex, rigid, and inaccessible to smaller suppliers. The Procurement Act 2023 was introduced to address these issues and to create a procurement system that is more efficient, inclusive, and aligned with national priorities. Whilst this was introduced in October 2023, it only went live in February 2025 which is why everyone is talking about it now.

The Act aims to simplify the procurement process, open up opportunities for SMEs and VCSEs, embed transparency and accountability, strengthen supplier performance management, and support innovation and social value delivery. It represents a shift in both mindset and mechanism, placing greater emphasis on outcomes and public benefit.

Key Changes Introduced by the Procurement Act 2023

One of the most significant changes is the introduction of a new “competitive flexible” procedure. This replaces the traditional open, restricted, and negotiated procedures, giving contracting authorities more freedom to design procurement processes that are proportionate and tailored to the market. This flexibility is expected to encourage more innovative and efficient procurement practices.

Another major shift is the replacement of the “Most Economically Advantageous Tender” (MEAT) with the “Most Advantageous Tender” (MAT). This change allows buyers to consider a broader range of factors beyond price, such as social value, environmental impact, and innovation. It reflects a growing recognition that public procurement should deliver more than just cost savings.

Contracts valued over £5 million must now include Key Performance Indicators (KPIs), which must be monitored and reported on throughout the contract lifecycle. This requirement is designed to improve contract management and ensure that suppliers are held accountable for delivering value. This includes Social Value – and NO, you cant get out of this by simply saying that you’ll do a litter pick. It needs to be quantifiable and yes you got it… reported on within your quarterly service meetings at a minimum (or specified interval by the buyer)

All procurement notices must now be published on a new central digital platform. This platform will serve as a single point of access for suppliers, improving visibility of opportunities and enabling better data-driven decision-making across the public sector.

The Act also introduces a public debarment list. Suppliers who have demonstrated poor performance or misconduct may be excluded from future procurements. This measure is intended to raise standards and protect public funds by ensuring only reliable suppliers are awarded contracts.

Transparency is a core principle of the new regime. Authorities are now required to publish more information, more frequently, and in a more accessible format. This includes notices of planned procurements, contract awards, and performance data, all of which will help suppliers better understand the market and make informed decisions.

Changes Make Procurement Fairer for New Suppliers

One of the most welcome aspects of the Procurement Act 2023 is its focus on levelling the playing field for new and smaller suppliers. Historically, public procurement processes have often favoured larger, more established organisations—those with the resources to navigate complex procedures and long-standing relationships with contracting authorities.

The new regime actively seeks to change that. By simplifying procedures, reducing unnecessary bureaucracy, and mandating greater transparency, the Act makes it easier for SMEs, VCSEs, and first-time bidders to access and compete for public contracts. The introduction of the competitive flexible procedure allows buyers to tailor procurement processes to suit the market, which can open the door to more innovative and agile suppliers.

Additionally, the emphasis on social value and local impact under the new “Most Advantageous Tender” (MAT) criteria means that smaller suppliers who deliver meaningful community benefits may now score more competitively than before. This shift not only diversifies the supplier base but also ensures that public spending delivers broader value to society.

Still got a question?

We’re here to help.

📞 Book your free 15-minute support call with one of our expert bid consultants today. Whether you’re stuck on what this means for you, or you’ve gotten lost with your login steps or unsure where to find your PPON, we’ll walk you through it—no strings attached.

👉 Get in touch now and take the stress out of supplier registration.

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