This month, new legislation comes into effect resulting in one of the biggest ever changes to the way the public sector buys goods and services, and opening up the public sector’s spend to more SMEs than ever before.
The major reforms have opened up the public sector’s £187 billion spend each year to SMEs by changing the way government buys to enable the best bidders to win.
The objective is to increase competition in its marketplace by encouraging more businesses, large and small, to be able to tender for work. The aim is to get the best value for money for the taxpayer; and work with SMEs to drive innovation and efficiencies in public services.
What has changed by law?
Public sector suppliers and their sub-contractors must now be paid within 30 days
- Public bodies will be publicly accountable via their annual late payment report
There will be a much simpler and quicker bidding process
- For example, they have abolished complicated forms such as the Pre-Qualification Questionnaires for low value public sector contracts.
The launching of a new public sector marketplace online, making it much easier to find opportunities - www.gov.uk/contracts-finder
- All public sector contracts and pipelines now on one website - above £10,000 in central government and £25,000 in the wider public sector.
- Free to use and register for tailored email alerts on new contracts
- Quick and easy to search by price, location and sector.
- Compatible with smart phones and tablets.
Public bodies will also report on new spend with SMEs, increasing accountability.
More changes building on this legislation are coming soon in the Small Business Enterprise and Employment Bill.