Starting this month, the UK Procurement Act comes into effect, introducing a new and improved framework for businesses looking to secure government contracts. This is a huge opportunity for small and medium enterprises (SMEs), as the new regulations aim to simplify access, increase transparency, and create a fairer playing field.

‍

For business owners, this change could mean easier access to government contracts, which are worth a staggering £300 billion annually. In 2022/23, SMEs secured £39.7 billion in direct government contracts, nearly doubling from the previous year. If you’ve ever considered bidding for public sector contracts, now is the time to prepare.

‍

Key Benefits of the Procurement Act for SMEs

‍

Simplified Access and Bidding

‍

One of the biggest hurdles for SMEs in the past has been the complexity of government procurement processes. The new act makes bidding easier and more accessible:

‍

Less Bureaucracy: Documentation and eligibility requirements will be more flexible, making it easier for smaller businesses to compete.

New Digital Platform: A centralized bidding platform will streamline the process, allowing businesses to register, bid, and track opportunities all in one place.

‍

New Evaluation Criteria – It’s Not Just About Price

‍

Traditionally, government contracts were awarded based on the “Most Economically Advantageous Tender” (MEAT), prioritising the lowest cost. The new system shifts to “Most Advantageous Tender” (MAT), which means:

Greater focus on sustainability and social values

More emphasis on quality, innovation, and long-term value

A level playing field for SMEs that excel in social responsibility and environmental practices

‍

This is a big advantage for SMEs that integrate social impact and sustainability into their operations. If your business contributes to local employment, ethical sourcing, or green initiatives, you could have a competitive edge over larger corporations.

‍

Increased Transparency & Fairer Competition

‍

Many SMEs hesitate to bid for government contracts due to concerns about favouritism and opaque decision-making. The new act aims to build trust by:

• Providing better explanations for bid selection decisions
• Enhancing visibility into procurement processes
• Reducing the influence of large firms with disproportionate resources

With clearer guidelines and more accountability in the system, smaller businesses will have a fairer chance at securing contracts.

‍

How SMEs Can Prepare

‍

With these changes, businesses that prepare early will be in the best position to benefit.

Here are a few key steps to take now:

‍

✅ Strengthen Your Public Image – Showcase your company’s strengths in sustainability, social responsibility, and innovation.

✅ Maintain a Strong Financial Profile – Good credit scores and financial stability will improve your chances of securing contracts.

✅ Obtain Relevant Certifications – Consider accreditations like ISO 14001 (environmental management) or Cyber Essentials (IT security) to meet government standards.

✅ Stay Updated on Procurement Regulations – Keep track of the latest updates and familiarise yourself with the new digital bidding platform.

‍

‍

The UK Procurement Act 2025 is a significant shift towards a fairer, more inclusive system where SMEs can thrive. With the government actively working to reduce red tape, increase transparency, and prioritise social impact, businesses that take proactive steps now will be in a prime position to secure lucrative government contracts.

If your business is looking to scale up and access new growth opportunities, now is the time to prepare.

‍

Need help? We offer expert guidance and support to help SMEs navigate the new procurement landscape and access the capital needed for growth. Get in touch today to find out more.

‍