Commons Sense

House of Commons · Ministers' Questions

Public Procurement Reform

Thursday 5 December 2024 · 8 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 8 Not answered 0

Key points

  • The Procurement Act 2023 will create a simpler, more flexible procurement system in February 2025.
  • The Government is working to ensure small and medium-sized enterprises can bid successfully for public contracts.
  • Steps are being taken to use public spending to support local companies across the country.

Topics (select to filter)

Questions & Answers

Q1 Euan Stainbank Lab Falkirk
Business & Trade
Context

The MP asked about steps to reform public procurement following the passage of the Procurement Act 2023.

Question

What steps he is taking to reform public procurement. The Procurement Act 2023 commences in February 2025, creating a simpler, more flexible procurement system underpinned by a new mission-led national procurement policy statement to ensure that public procurement delivers on the Government's missions.

Answer from Georgia Gould

I spent the last few weeks meeting small and medium-sized enterprises, voluntary and community sector organisations, wider businesses and contracting authorities to discuss how we ensure that the approximately £300 billion that is spent each year on public sector procurement delivers for our communities. With this Government, procurement will deliver value for money, better public services and our national missions.

Partly answered

Not addressed: The specific steps to implement the Procurement Act 2023 were not detailed

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Q2 Katrina Murray Lab Cumbernauld and Kirkintilloch
Business & Trade
Context

The MP noted the redevelopment of Cumbernauld town centre as an example to help more small businesses bid successfully for contracts.

Question

Will the Minister work with local authorities and the Scottish Government to help more small businesses to bid successfully for contracts, especially in relation to large projects like the redevelopment of Cumbernauld town centre?

Answer from Georgia Gould

It is critical that we open up public procurement to small businesses. £300 billion is a huge amount of public money, and SMEs are rooted in our communities providing local, often good-quality jobs. We will crack down on late payments affecting cash flow.

Partly answered

Not addressed: The collaboration with the Scottish Government was not addressed

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Q3 Bill Esterson Lab Sefton Central
Business & Trade
Context

The MP questioned the previous Government's procurement practices, particularly during the pandemic.

Question

Will the Minister confirm that this Government will use public spending to contract directly with local companies and economies across the country in contrast to past Conservative party actions?

Answer from Georgia Gould

We are taking action now through new procurement policies. The Chancellor announced a new covid corruption commissioner to recover public money.

Partly answered

Not addressed: Commitment to contract directly with local companies was not confirmed

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Q4 Euan Stainbank Lab Falkirk
Economy Taxation Business Compliance
Context

The MP emphasized the need for value for money and questioned inefficiencies under previous administrations.

Question

Does the Minister agree that billions spent on public procurement must deliver value for taxpayers, and what steps are being taken to ensure efficiency?

Answer from Georgia Gould

Under our system, we need to cut waste and drive efficiency. The previous Government failed to do so during the pandemic. We aim for new transparency and a focus on fraud.

Partly answered

Not addressed: Concrete measures were not specified

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Q5 James Wild Con North West Norfolk
Economy
Context

The MP asked about the Government's precise target for delivering savings from the £400 billion procurement budget.

Question

What is the Government's precise target for delivering greater savings from a £400 billion procurement budget?

Answer from Georgia Gould

£400 billion is an enormous amount of public money. We need to ensure that it goes into growth and delivers on our missions. We will provide further information in February.

Partly answered

Not addressed: Specific savings targets were not provided

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Q6 Max Wilkinson Lib Dem Cheltenham
Business & Trade
Context

The MP highlighted concerns about losing talent in the start-up community to international cities.

Question

Can the Minister confirm that steps being taken by the Government are good news for SMEs in the cyber-security sector, particularly regarding public procurement?

Answer from Georgia Gould

We need to ensure that public money supports growth and innovation. I am happy to speak with SMEs in his constituency about opportunities available.

Partly answered

Not addressed: Specific support for cyber-security SMEs was not detailed

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Q7 Jim Shannon DUP Strangford
Northern Ireland Business & Trade
Context

The MP asked about steps taken to ensure better procurement measures domestically, particularly for Northern Ireland.

Question

What steps have been taken to ensure better procurement measures domestically in the United Kingdom and the devolved nations, especially Northern Ireland?

Answer from Georgia Gould

Through our procurement regime, we support small businesses locally. We will continue to do so while respecting trade obligations.

Partly answered

Not addressed: Specific steps for Northern Ireland were not detailed

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Q8 Richard Holden Con Basildon and Billericay
NHS Economy Taxation
Context

The question stems from meetings with SMEs following the Budget, highlighting concerns about the impact of increased National Insurance contributions on indirect providers of public services such as GPs and hospices. The concern is that these impacts were not fully considered during budget planning.

Question

I am concerned about the impact of raising national insurance on many indirect providers of public services like GPs and hospices, which was not fully factored into the Budget. Given over a month has passed since then, can you provide an estimate of how this will affect the cost of public procurement to the nearest £1 billion?

Answer from Georgia Gould

Unfortunately, the last Government left public services in crisis. Every day I saw strain on these services as people waited up to 12 hours for ambulances that sometimes did not arrive. We are taking action to invest in our public services and deliver growth through our procurement regime to support SMEs by ensuring money is not lost and suppliers are paid quickly. More details will be set out to the House in February.

Partly answered

Not addressed: The specific impact on public procurement costs due to increased national insurance was not addressed with a concrete estimate.

How: Changed Subject, General Principles

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