In 2025, public sector procurement in the UK is undergoing a transformative shift, driven by the new Procurement Act 2023 and the updated National Procurement Policy Statement (NPPS), which came into effect on 24 February 2025.
These changes aim to modernise procurement processes, enhance transparency, and ensure that public spending delivers maximum value for money while supporting broader social, environmental, and economic goals.
Why Best Practice Matters
Best practice in procurement is more than just compliance—it’s about strategic value creation. By sharing what works across departments and authorities, public bodies can:
- Reduce duplication of effort
- Improve supplier relationships
- Drive innovation
- Achieve better outcomes for citizens
The UK government has reinforced this through Procurement Policy Notes (PPNs), which provide detailed guidance on implementing best practices across various procurement scenarios.
Key Themes in 2025
1. Social Value Integration
PPN 002/25 and the NPPS emphasize the importance of considering social value in contract awards. This includes promoting equality, improving community wellbeing, and supporting local economies.
2. SME and VCSE Engagement
PPN 001/25 sets targets for increasing procurement spend with Small and Medium Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VCSEs), recognising their role in driving innovation and local growth.
3. Sustainability and Net Zero
PPNs such as 006/25 and 016/25 require contracting authorities to consider carbon reduction plans and environmental impact in major contracts, aligning procurement with the UK’s net zero commitments.
4. Transparency and Open Contracting
The NPPS and PPN 019/25 mandate greater transparency through platforms like Contracts Finder, ensuring public accountability and enabling better market access for suppliers.
5. Digital and AI Governance
With the rise of AI, PPN 017/25 introduces guidance on transparency in AI use within procurement, ensuring ethical and responsible deployment of emerging technologies.
Sharing Best Practice: How It’s Done
- Commercial Playbooks (PPN 011/25): These provide structured guidance on contract design, risk management, and supplier engagement.
- Open Book Contract Management (PPN 004/25): Encourages collaborative working and financial transparency between buyers and suppliers.
- Communities of Practice: Forums like the Government Commercial Function and Crown Commercial Service facilitate knowledge exchange and peer learning.
Delivering Best Value
Best value is no longer just about the lowest price. It’s about whole-life value, including:
- Quality and performance
- Social and environmental impact
- Innovation and resilience
- Long-term cost-effectiveness
The NPPS mandates that all contracting authorities must have regard to these principles when planning and executing procurements.
Conclusion
The UK’s public procurement landscape in 2025 is more strategic, inclusive, and outcomes-focused than ever before. By embracing best practice and striving for best value, public sector organisations can ensure that every pound spent delivers maximum benefit—not just economically, but socially and environmentally too.