Procurement Act 2023: What Changed

The Procurement Act 2023 is the UK's new legal framework for public procurement. It came into force on 24 February 2025, replacing the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Contracts Regulations 2016, and the Defence and Security Public Contracts Regulations 2011.

The Act applies to all contracting authorities in England, Wales, and Northern Ireland (Scotland has its own procurement legislation). It covers the purchase of goods, services, and works by public bodies including central government, local authorities, NHS trusts, schools, and arm's-length bodies.

The stated aims of the Act are to create a simpler, more flexible, and more transparent procurement system. It also aims to improve access for small and medium enterprises (SMEs), strengthen rules around conflicts of interest, and give contracting authorities more discretion in how they run procurements.

1. Competitive Flexible Procedure. The Act replaces the prescribed procedures of PCR 2015 (open, restricted, competitive dialogue, competitive procedure with negotiation, innovation partnership) with a single "competitive flexible procedure". Contracting authorities can design their own procurement process, provided it is transparent, proportionate, and treats suppliers equally. The open procedure remains available as a named option.

2. Central Digital Platform. All procurement notices must be published on a new Central Digital Platform. This replaces the previous system of publishing on Find a Tender and Contracts Finder. The platform aims to make opportunities easier to find and procurement data more accessible.

3. New exclusion grounds. The Act introduces mandatory and discretionary exclusion grounds that are clearer and more structured than under PCR 2015. Serious criminal offences, sanctions violations, and certain competition law breaches are mandatory exclusion grounds. A new "debarment list" allows the government to proactively exclude suppliers.

4. Contract Performance Notices. Contracting authorities must now publish notices about how contracts are performing. These include Key Performance Indicators (KPIs) and assessments of whether suppliers are meeting their obligations. This is designed to improve transparency and accountability in contract delivery.

For procurement professionals in the public sector, the Act brings both more flexibility and more responsibility. The competitive flexible procedure means you have more freedom to design procurements that suit the specific requirement, but you must be able to justify your approach if challenged.

Transparency obligations are stronger. You must publish pipeline notices (advance notice of upcoming procurements), tender notices, award notices, and contract performance notices — all on the Central Digital Platform.

You must also pay more attention to proportionality. The Act requires that procurement processes are proportionate to the value and complexity of the contract. Over-burdensome selection questionnaires and evaluation criteria can now be more easily challenged.

Training is essential. If your procurement team was trained under PCR 2015, they need to understand the new procedures, notice requirements, and exclusion grounds. Our procurement guides and quizzes cover these fundamentals.

For businesses bidding for public sector contracts, the Act brings several positive changes. The single digital platform makes it easier to find opportunities. The emphasis on proportionality should reduce the burden of excessively complex tender processes. And improved transparency means you can see how contracts are performing — useful intelligence when deciding whether to bid.

However, the new exclusion grounds mean you need to be confident that your business has no unresolved issues in the mandatory exclusion categories. Check the debarment list and ensure your compliance documentation is up to date.

The competitive flexible procedure means that each procurement may look slightly different, so read the procurement documents carefully rather than assuming the process will follow a familiar pattern. Our Bid Compliance Checklist tool can help you verify that your response covers the key requirements.

If you are new to public sector bidding, our Procurement Basics for Beginners guide and Prepare Your Business for Public Contracts guide provide step-by-step guidance that reflects the Procurement Act 2023 framework.