<\/p>\n
Dr. Totis Kotsonis<\/a> of Pinsent Masons was commenting after more details of the government\u2019s plans to reform public procurement rules were detailed in UK chancellor John Healey\u2019s Budget announcement<\/a> (166-page \/ 4.5MB PDF) on Wednesday.<\/p>\n Back in the summer, the government set out plans<\/a>\u00a0to change how bids for major UK government contracts are assessed\u00a0from 1 January 2027, with a view to better rewarding suppliers that commit to invest in local jobs and skills. However, the government has now said it intends to pursue wider reforms, which would impact all public contracts in England.<\/p>\n In March 2027, it said, a new national procurement policy statement will be laid in parliament to \u201cprioritise delivery of high-quality jobs, fair pay and skills opportunities, including pathways for young people\u201d.<\/p>\n The government also intends to re-define what constitutes a \u2018UK supplier\u2019 for public procurement purposes, by January 2027.<\/p>\n \u201cFor too long, broad definitions have allowed companies with little more than a UK post box to be classed as a UK firm,\u201d the government said. \u201cThis will help ensure economic resilience in key supply chains, safeguarding UK sovereign capabilities. By maximising the UK\u2019s domestic capabilities, alongside contracting with suppliers from our international allies, the government will ensure that procurement supports communities and that UK public services receive the best solutions on the market.\u201d<\/p>\n For public contracts for large government infrastructure and construction projects, a further changed is planned. Prospective suppliers will be expected to commit to a target of at least 3% for apprenticeships on such projects.<\/p>\n “The government\u2019s pledge to use public procurement to support British businesses will require some careful thinking,\u201d said Kotsonis. \u201cThe UK\u2019s room for manoeuvre is constrained by its commitments under the WTO Government Procurement Agreement and bilateral trade agreements, including the UK-EU Trade and Cooperation Agreement, not to discriminate against suppliers and goods from trading partners in covered procurements.\u201d<\/p>\n \u201cWhilst those commitments are subject to exceptions, these are limited in scope and cannot justify a general \u2018Buy British\u2019 preference in covered procurements. Attempting to interpret those exceptions more flexibly also creates the risk of reciprocal restrictions on British suppliers\u2019 access to overseas procurement markets. Indeed, the government\u2019s ambition to \u2018Buy British\u2019 sits uneasily with its efforts to ensure that UK businesses are not disadvantaged by the EU\u2019s emerging \u2018Made in Europe\u2019 policy<\/a>. The challenge is to support British industry without undermining the very international market access on which British exporters depend. That will not be an easy task,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"
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