Why this matters.
The Procurement Act 2023, which replaced the old EU-derived public contract regulations for new procurements from 24 February 2025, changes how small businesses win and keep UK public sector work. Suppliers are expected to register their details once on the government’s central digital platform and reuse them across bids. Contracting authorities must assess bidders against mandatory and discretionary exclusion grounds, which cover matters such as fraud, bribery, modern slavery, tax offences, serious professional misconduct and poor past performance. A supplier that is found to have an exclusion ground, or that fails to disclose one, can be barred from a procurement and can be placed on a debarment list.
The Act also introduces duties that reach into the supply chain. Public sector contracts must include payment terms of 30 days for valid invoices, and those payment terms must be passed down to subcontractors. Contracting authorities must publish notices throughout the life of a contract, and must consider how they can make it easier for small and medium-sized enterprises to compete. For a small business, being ready means having your registration details, financial information, policies and past-performance evidence in order before a bid deadline, and knowing how your own subcontractors and payment practices would look under scrutiny.