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National Procurement Policy Statement

13 February 2025

Proposing MP
Queen's Park and Maida Vale
Type
Written Ministerial Statement
Department
Cabinet Office

At a Glance

Issue Summary

The Government is publishing a National Procurement Policy Statement to maximise the impact of public procurement spending.

Action Requested

The statement outlines new measures to support small and medium-sized enterprises (SMEs) and voluntary, community and social enterprises (VCSEs), including setting three-year targets for direct spend with these entities, regular spot checks for timely payments, and a requirement for prompt payment of invoices. It also includes reforms to assess the public interest in procurement processes and the establishment of a Commercial Innovation Hub.

Key Facts

  • £400 billion spent annually on public procurement.
  • New measures will set three-year targets for direct spend with SMEs from April 2025 and VCSEs from April 2026.
  • Regular spot checks ensure smaller companies are paid within 30 days.
  • Procurement Act 2023 commences on Monday 24 February.
Assessment & feedback
Summary accuracy