The Procurement Act 2025: A Game-Changer for Small Businesses (said with a rising inflection…)

As a small business, navigating the world of public procurement has always been a challenge. Over the years as an SME, we’ve struggled against a number of things; being told not to bid for frameworks because we’re too small, being forced to sub to major businesses who CHOOSE to treat us terribly and exploit our capability to their own gain, not being paid to the point of significant aged debt, not being awarded work because someone is wedded to a different framework that we weren’t able to join because we’re stuck in catch-22, being forced to pay for bid writing support due to the scale and complexity of tenders whilst not being of the size to carry this capability inhouse costing thousands with no guarantee of a return, being told we can’t bid because our small outsourced supplier holds our ISO27001 (they should…they hold all of our tech) even though we’re CE+ and security cleared. Big is often seen as reliable, but the number of examples of poor delivery and customer experience by big household names is countless. I know from personal connections that some of these firms are being awarded more business than they can handle because of this, but are saying yes anyway, only to let customers down and charge the public purse a pretty penny doing it.

To be honest, the list of frustrations goes on, but I shan’t, partly because my coffee has kicked in.

So, what will the new act change?

Well, this landmark legislation is set to revolutionise the way public sector contracts are awarded, so is perhaps a real opportunity for small businesses like ours to benefit.

Here is what we’re expecting:

Simplified Processes

One of the biggest wins for small businesses is hopefully the simplification of procurement procedures. The Act aims to consolidate multiple complex frameworks into a single, streamlined process. No more jumping through hoops or deciphering confusing jargon—just a straightforward approach that allows us to focus on what we do best: delivering great services.

A Central Digital Platform

The introduction of the Central Digital Platform (CDP) is a significant change. For the first time, all public procurement opportunities will be available in one place. As a small business, we won’t need to spend hours scouring multiple sources to find relevant contracts. This centralised platform will hopefully save time and money, and ensure we never miss an opportunity.

Fairer Requirements

The Act encourages contracting authorities to set proportionate eligibility criteria. This means we won’t be locked out of bidding for contracts because of unrealistic financial or technical demands. For businesses like ours, this levels the playing field and opens doors to contracts we previously could not access, and it is probably this that I’m most excited about.

Faster Payments

Cash flow is the lifeblood of small businesses, and delayed payments have always been a significant pain point for us to the point of taking us to the brink a few years ago. The new Act requires public sector organisations to pay suppliers promptly, which will give us greater financial stability and confidence to take on larger projects. I’ll not hold my breath, but I really hope this is the case.

Opportunities for Collaboration

The Act promotes transparency in subcontracting and encourages small businesses to form consortia. This gives us the chance to work alongside other companies, participate in larger projects, and build strong partnerships. It’s an exciting way to grow while sharing risks and rewards and we’re already talking to and working with some fabulous partners!

Focus on Social Value

Contracting authorities will now prioritise social value when awarding contracts. It’s meant to be a chance to show that small businesses can make a big difference but my reservation here is scale. We have delivered more inclusivity than our larger competitors and actually walk the walk here, but we’re not placing thousands of people and the PR machines and bid writers on their side make the reality seem a little distorted in places.

Constructive Feedback

Another highlight is the requirement for authorities to provide detailed feedback to unsuccessful bidders. This will help us learn from every bid, improve our submissions, and increase our chances of success in the future. Growth through knowledge has never been more achievable and given the kaizen mentality at the heart of our business, I’m very much on board.

Innovation Matters

The Act’s emphasis on innovation creates an environment where small, agile businesses can hopefully thrive. We’re excited to bring fresh ideas and creative solutions to the table, hoping they’ll be valued in the procurement process. My only concern is where processes can be predetermined, and of course how this potentially limits the opportunities to innovate.

So, let’s see…

Our government has, in various guises and for a long time, talked about the value small businesses bring to the table. That it is committed to breaking down barriers that have held us back for too long. As someone running a small business, I’ve yet to feel the benefit of the rhetoric if I’m honest, but the Procurement Act 2025 represents a fresh start for public procurement in the UK, so I’m choosing to be optimistic.

For our business and many like us, this Act isn’t just a legislative change - it’s hopefully a genuine opportunity. With simplified processes, improved transparency, and a focus on fairness, we’re ready to embrace public procurement with renewed confidence.

The future looks brighter than it has for some time in this regard, and we’re excited to take our seat at the table in the new era of public sector opportunities, even if we might need a cushion, because it’s a table that has, for too long, been dominated by the same old faces.

So pass me that cushion...