New public procurement rules take effect

New changes to make public procurement processes more efficient, transparent and competitive have taken effect from 24th February 2025.

The changes come following the Procurement Act 2023 gained Royal Assent in October 2023.

Among the updates to public procurement rules coming into effect include the shift from awarding contracts based on the Most Economically Advantageous Tender (MEAT) to the Most Advantageous Tender (MAT). This change allows Public Sector contracting authorities to consider broader factors such as social value and environmental performance when making award decisions, rather than focusing solely on cost.

Additionally, the new rules mandate 30-day payment terms for Public Sector contracts, ensuring quicker payments to suppliers. This is expected to enhance cash flow for businesses working with the government and encourage greater participation from small and medium-sized enterprises (SMEs).

Overall, the updates under The Procurement Act 2023 aim to create a more balanced and flexible approach to public procurement, promoting sustainability and social impact while maintaining competitive and fair practices.

Alongside the changes, STAR Procurement, the shared procurement service used by Stockport Council and a number of other local authorities in Greater Manchester and Merseyside is launching a pilot scheme to simplify the bidding process further for smaller contracts, using an AI-powered platform to match businesses with work in their local authority area.