National Procurement Policy Statement update

As reported in September, the Government has delayed the implementation of the Procurement Act 2023 (‘Act’).

The reason cited for the delay by the Parliamentary Secretary for the Cabinet Office, Georgia Gould, is to allow the Government to update the National Procurement Policy Statement (‘NPPS’) with a new NPPS which “drives delivery of the Government’s missions”.

The current NPPS was described as not meeting the “challenge of applying the full potential of public procurement to deliver value for money, economic growth, and social value”.

What is the NPPS?

The NPPS is a document published by the Cabinet Office which sets out the UK Government’s overarching principles and priorities for public procurements.

Contracting authorities which are subjected to the NPPS ‘must have regard to’ the NPPS when undertaking procurements in accordance with section 13 (9) of the Act.

The purpose of the NPPS is to deal with matters such as achieving value for money and social value through public procurement, the promotion of SME access to public contracts, increasing capability and upskilling contacting authorities in contract management.

The Government views the NPPS as an essential element of the new regime which allows the Government to set and communicate the wider policy objectives.

Will anything change?

We know that the Government has made pledges in respect of tackling contract fraud and promoting transparency as part of their key missions.

The Government has also committed to expanding transparency further by extending the Freedom of Information Act 2000 to private companies which deliver public services.

Promotion of social values and SMEs will also be a key driver of the new NPPS, as it was a pledge to reform procurement rules to ensure SME’s have greater access to central and local government contracts.
Social value will also be in the forefront of any change to the NPPS due to its positive impact to the local community.

The Government has pledged to create a ‘Social Value Council’ which will be made up of public employer and trade union representatives to ensure the ‘best employers’ get recognition; it will also review how social value can be better strengthened and delivered in public contracts.

A new ‘National Procurement Plan’ may also be part of the new NPPS which will mandate that social value will be explicitly considered in public sector contract design.

Social value vs award criteria

It is important to note that contracting authorities ‘must have regard to’ the NPPS and any social value objectives within it. This has also been set out as a clear obligation within the Act. However, this cannot override section 23 (2) of the Act that the award criteria must relate to the subject matter of the contract.

Previous case law has also clarified that that term ‘must have regard to’ does not translate into an obligation to always follow Government guidance. Therefore, contracting authorities would be able to depart from the NPPS if there are good reasons for them to do so.

It is also important to note that the NPPS only applies to central government and English contract authorities, (in accordance with section 13 (10) of the Act).

Section 23 (5) of the Act sets out the requirements to ensure that the subject matter is linked to the award criteria.

Therefore, any changes to the NPPS in respect of social value must compliment the obligations of the Act.

What happens next to the NPPS?

The Government launched the consultation on the NPPS on 7 October 2024 which lasted until 4 November 2024.

Contracting authorities and private sector organisations have taken part in the consultation to give their views and opinions to shape the new NPPS.

The Government will now take some time to analyse the results of the consultation, and we wait to see how the NPPS will now be adapted in accordance with the Government's procurement priorities and the responses by various stakeholders.

How to contact us

Please do not hesitate to contact us in relation to any procurement advice. Weightmans has a range of experience on a number of procurement matters and we can support both public and private sector bodies.