UK Government opens consultation to reform public procurement and strengthen British industry

The UK Cabinet Office has launched a 10-week public consultation, closing on Friday 5th September 2025, on proposed reforms to the country’s public procurement policy. This initiative aims to ensure that the government’s £300 billion annual procurement budget better supports British industry, job creation, and skills development, while aligning with the ambitions set out in the UK’s newly published Industrial Strategy.

The consultation paper, “Public Procurement: Growing British Industry, Jobs and Skills,” sets out proposals to move public procurement beyond price-driven decision-making and toward a more strategic, outcomes-based model. Key reforms under consideration include placing greater weight on the social and economic benefits of public contracts, such as local employment, apprenticeships, and regional investment. By giving public sector buyers more flexibility to consider these broader outcomes, the government hopes to ensure that taxpayer-funded contracts contribute directly to UK economic resilience.

Supply chain transparency

Another significant proposal focuses on supply chain transparency, with plans to encourage or require buyers to examine where and how goods and services are produced. This approach is designed to support domestic suppliers, reduce dependency on international sources, and improve long-term supply chain stability.

Recognising the challenges small and medium-sized enterprises (SMEs) face in bidding for public contracts, the consultation also explores ways to reduce red tape and simplify the procurement process. Proposed measures include lowering administrative barriers, streamlining qualification criteria, and breaking contracts into smaller, more accessible lots, making it easier for UK-based businesses to compete for government work.

The government is calling for input from suppliers, public sector buyers, trade associations, and community organisations to help shape the final policy framework. Submissions are open until 11:45 PM on Friday 5th September 2025, via the official GOV.UK portal.

These reforms mark a potential turning point in how public money is used to fuel national priorities, positioning procurement as a key driver of economic growth, skills development, and support for British industry.

For more detailed information visit the UK Government consultation page on public procurement reform to review the proposals.