News

The UK Procurement Act 2023 is Now Live

The UK Procurement Act 2023, which launched on 24 February 2025, has now come into effect. Whilst many provisions of the new law will not directly apply to devolved Scottish authorities, there are still some notable implications for Scottish SMEs. Here’s what you need to know:

What is Not Changing for Scottish SMEs?

Generally, Scottish SMEs will continue to operate within the existing framework established by the Public Contracts (Scotland) Regulations 2015, the Procurement Reform (Scotland) Act 2014, and other Scottish procurement legislation. These regulations, designed specifically for Scotland, will remain in place. 

However, there are some aspects of the UK Procurement Act that will affect Scottish businesses, particularly when working with devolved Scottish authorities that engage in cross-border procurement activities.

Cross-Border Procurement and Framework Agreements

There will be some implications for devolved Scottish authorities that use framework agreements put in place by English, Welsh and Northern Irish authorities. However, the impact of this will not be felt immediately. 

Existing frameworks, those that were awarded and advertised before 24 February 2025, will continue to operate under the previous rules. Therefore, there will be no immediate impact for Scottish SMEs on an existing cross-border framework agreement. 

However, Scottish SMEs that wish to work on future contracts from these frameworks will need to be prepared for the new regulatory environment. Any framework agreements advertised after the UK Procurement Act has launched must comply with the new UK regulations. This shift will gradually come into play as new frameworks are launched. Scottish SMEs should stay alert to these developments.

Public Procurement Reform

Scotland has already taken significant steps to reform public procurement, some of which are now being mirrored by the new UK Procurement Act. 

Notably, the Act aligns itself with the Sustainable Procurement Duty in the Procurement Reform (Scotland) Act 2014, which explicitly requires Scottish authorities to consider how a procurement process can improve the economic, social and environmental wellbeing of their area – specifically including reducing inequality – and to act with a view to securing such improvements. It also requires consideration of how to facilitate the involvement of SMEs, third sector bodies and supported businesses and support innovation. The 2014 Act also increased transparency by requiring regulated contracts to be advertised on one single advertising portal, and by requiring authorities to set out anticipated contracts over the next two years in an annual procurement report, and it requires authorities to consider community benefits in major contracts.

Scottish suppliers will continue to enjoy legally-enforceable rights to equal treatment when bidding for regulated contracts under the UK Procurement Act

A New Digital Platform to Search for Opportunities

One of the most immediate changes Scottish SMEs should be aware of is the launch of the UK’s new central digital platform: the enhanced version of the Find a Tender service. This platform is now the go-to place for all procurement notices and information.

With many contracting authorities already onboarded, the Find a Tender service is now live for suppliers to search for and view opportunities. There is no need to register with the portal in advance, as suppliers will only need to register their details at the point of bidding. The platform’s launch provides an ideal opportunity for Scottish SMEs to consider extending their reach beyond Scotland and tap into new public procurement opportunities across England, Wales, and Northern Ireland. 

New Units to Support Procurement Standards

The introduction of the Procurement Review Unit (PRU) and the National Security Unit for Procurement under the UK Procurement Act 2023 is another significant development.

The PRU aims to raise standards in public procurement, driving accountability and ensure that the changes introduced by the Procurement Act 2023 become adopted in practice. You can find comprehensive information about the PRU service offer and how contracting authorities and suppliers should engage with it here. 

The National Security Unit, on the other hand, will support Ministers in the application of the new national security exclusion grounds, including in the investigation of suppliers for debarment and in assessing referrals made by contracting authorities for exclusions and terminations. The Cabinet Office has published specific guidance on the national security exclusion grounds, which you can find here.

So, What Does this Mean for Scottish SMEs?

The UK Procurement Act 2023 will not have a direct impact on the core procurement legislation that governs Scottish authorities. There will be no changes to the way in which you can find and access contract opportunities from Scottish Public Bodies. These opportunities will still be published on Public Contracts Scotland. 

However, the UK Procurement Act 2023 will have implications for Scottish SMEs that are looking to engage in cross-border procurement, in either England, Wales, or Northern Ireland. As new frameworks are introduced and authorities begin to operate under the UK’s new procurement rules, Scottish SMEs will need to stay informed and be ready to adjust to these changes.