Saturday, May 3, 2025
Saturday, May 3, 2025

New Law Aims to Simplify Council Contract Bidding for Small Businesses

by Eng Hanan
0 comments 1 views 2 minutes read

Related topics: Corporate / Economic Growth

Small businesses and social enterprises are set to benefit from a more transparent and streamlined process for bidding on contracts to supply goods, works, and services to public sector organizations, including Shropshire Council.

The Procurement Act 2023, which received Royal Assent in October last year, will take effect on 28 October 2024, replacing the current procurement regulations inherited from the EU. The Act aims to simplify the procurement system while ensuring compliance with international obligations. A key goal is to enhance transparency throughout the procurement lifecycle, ensuring taxpayer money is properly scrutinized.

Starting in October, Shropshire Council and other public bodies will be required to publish additional details for larger contracts, such as an 18-month pipeline of upcoming procurement activities and notices on contract performance, including any issues or variations.

A new central digital platform, managed by the government, will serve as a ‘one-stop shop’ for small businesses, making it easier for them to access opportunities. This platform will streamline the process by allowing businesses to submit their organizational details only once. In addition, councils will be encouraged to engage with potential suppliers early in the procurement process to develop requirements and remove barriers that may prevent small and medium-sized enterprises (SMEs) from participating.

Mark Jones, Shropshire Council’s Cabinet Member for Growth and Regeneration, said:

“We spend around £400 million annually on procuring goods, works, and services. This reform is a welcome change, increasing transparency while making it easier for small businesses and social enterprises to compete for council contracts—a key goal of our policy.”

The Act also strengthens the council’s ability to exclude suppliers based on factors such as historical poor performance. A central debarment list will enable procurement teams to access information on providers barred from public sector contracts.

The new procurement rules represent a shift toward greater fairness and transparency, benefiting both buyers and suppliers.

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