The new National Procurement Policy Statement: early positive signs

Georgia Gould, Parliamentary Secretary at the Cabinet Office, said of the new National Procurement Policy Statement (NPPS): “This new policy statement sets out our vision for how procurement can put this country back into the service of working people, and deliver our Plan for Change – by making sure the public sector is committed to growing the economy and empowering our communities with innovation and opportunity.”  

On 12 February 2025, the NPPS was published. It contains the Government’s strategic priorities for public procurement and describes how contracting authorities can support their delivery. The NPPS came into effect on 24 February 2025, on the same day as the new UK Procurement Act 2023 (the Act). 

The Act covers some £400 billion in annual spend and introduces a new legal duty on contracting authorities to 'have regard to' government policy priorities, as set out in the new NPPS. 

Both Sandra Hamilton, who recently joined Stone King from the Manchester University Institute of Innovation Research, and Julian Blake, Stone King Partner and public benefit lawyer, contributed to Minister Gould’s Cabinet Office Expert Procurement Roundtable Consultations, which helped to shape the NPPS. 

At this stage, the big social value question is, does the NPPS enable the system to better leverage £400 billion in spend to improve the lives of people facing the most disadvantage?  

A few early and positive observations suggest the answer is yes: 

• It provides clear direction to pursue long-term objectives 
• Mission-alignment required a welcome refresh to the Social Value Model, with eight policy priorities firmly positioning procurement as a social policy mechanism 
• Social enterprises are being valued, recognised and more deeply embedded 
• Exemplary standards of employment are expected on government contracts, including high-quality jobs, fair wages and good working conditions 
• Overcoming barriers to employment is a clear policy objective – requiring deeper partnerships with the VCSE sector 
• The revised Social Value Model requires in-scope contracting authorities to collaborate with communities and anchor institutions; and to report on the number of engagements 
• Direct spend targets are coming for SMEs and VCSEs  
• Public benefit tests will be required before starting a procurement process 
• Public sector reform – innovation, utilising the flexibilities available to stimulate and reward new ways of working, improving outcomes for people and planet.  

Reflecting on the Cabinet Office Expert Procurement Roundtable Consultation process, Sandra Hamilton said: “While I would have liked to see more distinction between competitive market purchasing and the system stewardship needed to co-design and deliver 21st-century public services, I can celebrate the use of 'market stewardship' as a step in the right direction in the transition of public procurement from price-taker to market-shaper.” 

Please do get in touch with either Sandra or Julian if you would like to work with them on any collaborative commissioning matters.