From February 2025, the UK procurement landscape experienced a major shift with the implementation of the Procurement Act 2023. This new framework introduces SME-friendly reforms that prioritise local economic growth, giving councils and public bodies greater flexibility to reserve contracts for local suppliers.
With new requirements including SME spend targets, simplified tendering routes, and mandatory job-centre vacancy advertising, this marks a pivotal moment for small businesses. However, many SMEs are unsure how to navigate the changes. This blog offers practical advice to help UK SMEs capitalise on the reforms and secure more public sector contracts.
Table of Contents
a) Local contract reservation
Public bodies can now reserve specific procurements for local SMEs, allowing councils to prioritise businesses within their region. This change is designed to strengthen local economies and supply chains.
b) SME spend targets
Contracting authorities must set and report on SME spend targets, pushing them to allocate a greater percentage of their budgets to small businesses.
c) Mandatory job-centre advertising
Suppliers awarded public contracts are now required to advertise job vacancies through local Jobcentres, ensuring employment opportunities benefit the surrounding community.
d) Simplified procurement routes
Processes have been streamlined, including the introduction of the ‘competitive flexible’ procedure and increased use of contract “lots” to make tenders more accessible to smaller suppliers.
1. Register on Procurement Portals
Ensure your business is registered on Find a Tender, Contracts Finder, and any regional portals. These platforms are now the primary source of public sector opportunities.
2. Optimise Your Bid Strategy
Highlight your SME status in every bid. Emphasise your contribution to local employment, environmental impact, and community initiatives. These factors now hold more weight in evaluation criteria.
3. Use Local Jobcentres
Familiarise yourself with how to advertise vacancies at local Jobcentres. Ensure postings meet the required standards, including job role, pay rate, and application details.
4. Prepare Supporting Evidence
Have policies and documentation ready, such as:
5. Partner with Other SMEs
Consider consortium bidding or partnering with complementary local businesses to increase capacity and demonstrate collaborative value.
At Tender Consultants, we understand the intricacies of public procurement and specialise in helping SMEs win more work.
“Tender Consultants crafted a winning bid that truly highlighted our local impact. Their advice on job-centre compliance and social value was crucial.”
– SME client, construction sector
Read more on our testimonials page.
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