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.
1. Summary of 2025 SME-Friendly Reforms
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.
2. How SMEs Can Benefit
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:
- Social value strategy
- Environmental and sustainability policies
- Case studies demonstrating local impact
- Evidence of delivering in contract “lots”
5. Partner with Other SMEs
Consider consortium bidding or partnering with complementary local businesses to increase capacity and demonstrate collaborative value.
3. How Tender Consultants Can Support
At Tender Consultants, we understand the intricacies of public procurement and specialise in helping SMEs win more work.
- Bid Readiness
We assess your business against the new requirements and ensure you’re fully compliant with the Procurement Act 2023. - Tender Writing
Our experts craft compelling responses that align with new SME-weighted criteria, including local benefits and job-centre commitments. - Resource Hub & Templates
Access our free resources and guides to help you create high-quality, compliant submissions. - Post-Bid Feedback
Understand scoring breakdowns and receive advice on how to continuously improve future bids.
4. Testimonials from SMEs We’ve Helped
“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.
5. Resources and Further Reading
Explore actionable insights on SME bidding:
Ready to make the most of the 2025 SME reforms?
Let our team help you navigate these changes and win more contracts in 2025 and beyond.