Updated: 14 March 2025
New opportunities for growth have opened up for small business owners now that the long-awaited Procurement Act 2023 has become law.
After a delay following the change of Government in 2024, the Procurement Act 2023 finally came into force on Monday 24th February 2025.
The transformation of the procurement process promises to make accessing public sector contracts easier and fairer for small and medium-sized businesses.
With £400 billion1 spent on public sector contracts every year, opening up access to smaller businesses represents a significant opportunity for growth for this sector.
Here we explain what the Procurement Act 2023 is, how it could help your small business access new revenue, and how you can take advantage of this opportunity.
The Procurement Act 2023 is a change to the rules that govern how public bodies buy goods and services.
New legislation that simplifies and streamlines the procurement process has been designed to help small and medium-sized businesses win a greater share of the £400 billion spent annually on public sector contracts.
In a bid to open up public procurement to new entrants, such as small businesses, the new Act is more flexible and offers greater transparency than previous regulations.
Key changes that will benefit small businesses include:
To help small businesses better understand and access the new opportunities available to them, the Government has provided a host of information, including regular updates, Knowledge Drop videos, and deeper dive training material. Find out what you can do to act now here.
If finance will help you access more public sector contracts, find out what options are available to you here.
13/03/25: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.
1National Procurement Policy Statement – 13th February 2025
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