Following the introduction of the Procurement Act, the Government has launched a consultation on further reforms to public procurement to support the implementation of the new National Procurement Policy Statement, designed to open up more opportunities and simplify the process for small companies bidding for public sector contracts.
The proposals include amending the Procurement Act to exclude companies from bidding on any major contracts above £5 million if they cannot demonstrate that they pay invoices within an average of 60 days. Under PPN 015, companies are already required to pay all their invoices within an average of 55 days when working for central Government departments, their executive agencies and non-departmental public bodies, and this will reduce to an average of 45 days from 1 October 2025. The amendment to the Act would apply to all public sector organisations including local authorities.
