Blog Post

Procurement Reform: A Path to UK Economic Growth

Labour’s pledge to reform procurement rules offers a prime opportunity to advance how the public sector engages with innovative suppliers, particularly SMEs. This renewed focus on procurement practices could address long-standing challenges and fuel economic growth across the UK. 

PUBLIC has taken a fairly central role in working with the UK government to modernise procurement practices and practices, both at the policy and delivery level. While major strides have been made, barriers still exist for public authorities to embrace more modern, flexible forms of procurement.. The new administration has a chance to build on these foundations and accelerate the pace of transformation. In particular, to make the implementation of the Procurement Act a success, and to go even further.

As the government prepares to turn this pledge into a reality, it’s worth examining some of the groundwork already laid. Here, we take a walk down memory lane of five of our key resources that showcase how innovative procurement practices can improve public services and stimulate economic growth: 

  1. Buying Into The Future: How to Deliver Innovation through Public Procurement (2021)

The ‘Buying Into The Future’ report marked PUBLIC’s early commitment to advancing procurement innovation in the UK, offering insights that remain crucial in 2024. From our inception, we’ve recognised and raised the profile of the UK’s world-class startup ecosystem as a key driver of government innovation. The report’s 15 key recommendations provided a single framework for modernising technology procurement, tackling market barriers, and maximising benefits for both citizens and the UK economy alike. 

  1. Innovation in Procurement Toolkit (2021) 

PUBLIC, in collaboration with London Office of Technology and Innovation (LOTI), developed an Innovation in Procurement Toolkit to help London boroughs make smarter technology purchases. Guiding users through the entire procurement lifecycle, from preparation to contract management, the toolkit aims to reduce dependency on large suppliers. Through outlining pathways to working with startups, SMEs, and local suppliers, this resource can continue to offer digital teams, procurement leads, and service managers how to improve service delivery and stimulate local economic growth. 

  1. Global SME Procurement Benchmark: How Governments Can Open Up Access to SME Procurement (2022)

This Global SME Procurement Index analysed SME participation in government contracts across 18 countries, evaluating over 450 unique data points across six key dimensions: access, onboarding, cash-flow, payments, data, and cyber security. By proposing an ‘ideal procurement journey’ for SMEs, the index provides a roadmap for leveraging procurement as a key lever for economic growth and development, especially at the local level. In 2024, it could still serve as a useful reference for UK procurement teams to benchmark SME performance and identify opportunities for innovation in their purchasing strategies. 

  1. Open and Sustainable Public Procurement Toolkit (2022)

Used by over 10,000 practitioners worldwide, this resource offers practical strategies for embedding sustainability throughout the procurement lifecycle, promoting local supply chains, and spurring innovation in green technologies. As Labour sets out to boost economic growth while meeting its mandate to make ‘Britain a Clean Energy Superpower’, this guidance can be drawn from by public buyers to drive and measure sustainability goals while creating opportunities for SMEs, contributing to a greener, more prosperous UK economy. 

  1. A Guide to Evaluating Digital Projects (2024) 

PUBLIC’s 2024 guide helps government teams measure the impact of their digital projects more effectively. It offers practical steps to evaluate data, digital, and technology initiatives, balancing agile development with thorough assessment. This approach allows public sector bodies to make smarter technology investments, improve public services, and in turn contribute to economic growth through better use of and measurement of digital tools. 

These resources demonstrate how procurement reform can be a powerful economic driver. As we spotlight ways to drive sustainable economic growth as part of our ‘Leading with Innovation’ series, we invite you to explore these previous insights. To find out more today, contact our Director of Commercial, Spend & Impact, Johnny Hugill, at johnny@public.io

Labour's pledge to reform procurement rules presents a prime opportunity to enhance public sector engagement, driving economic growth across the UK.

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Natasha Wren

Head of Communications

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