Source: https://tendernation.io/glossary/procurement-act-2023 Glossary # Procurement Act 2023 The UK law that has governed most public sector buying in England, Wales and Northern Ireland since 24 February 2025. Updated 14 Oct 2026 The Procurement Act 2023 is the UK law that sets the rules for how most public bodies buy goods, services and works. It came into force on 24 February 2025 and replaced the EU-derived regimes, including the Public Contracts Regulations 2015, for procurements starting on or after that date. ## What it means The [Procurement Act 2023](https://www.legislation.gov.uk/ukpga/2023/54/contents) is supported by the [Procurement Regulations 2024](https://www.legislation.gov.uk/uksi/2024/692/contents/made), which fill in details such as what each notice must contain. Its main features include: - **Objectives for buyers.** [Section 12](https://www.legislation.gov.uk/ukpga/2023/54/section/12) requires buyers to have regard to value for money, public benefit, transparency and integrity, and to the particular barriers SMEs face. - **Two competitive procedures.** The open procedure and the [competitive flexible procedure](/glossary/competitive-flexible-procedure), in section 20. - **A new award test.** Contracts go to the [most advantageous tender](/glossary/most-advantageous-tender) under section 19. - **More transparency.** A series of notices across the life of a contract, published on the [Central Digital Platform](/glossary/central-digital-platform). - **Stronger exclusions.** Mandatory and discretionary exclusion grounds and a central debarment list. - **Prompt payment.** 30-day payment terms implied into public contracts and sub-contracts. The Act covers England, Wales and Northern Ireland and UK-wide reserved bodies. Scottish devolved bodies follow Scotland's own procurement rules. Procurements started under the old rules carry on under them until they finish. ## Why it matters for SMEs The Act was designed partly to help small businesses win more public work: one supplier registration, more advance notice of opportunities, a duty on buyers to consider lots, lighter rules below threshold and prompt payment down the supply chain. Knowing it well helps you spot when a buyer is doing something it should not. ## Practical tip You do not need to read the whole Act. Learn the handful of sections that affect bidders day to day: procedures, award criteria, standstill and payment. Our [Procurement Act 2023 guide for SMEs](/guides/procurement-act-2023-smes) is a good place to start. Find tenders that fit your business Search UK, EU and World Bank tenders in one place, get AI summaries and a fit score for each one, and track bids in a pipeline. Professional comes with a 14-day free trial, no card needed. [Browse live tenders](/opportunities)[Start free trial ](/register) 14-day free trial, no card required Browse by sector - [Construction work](https://tendernation.io/sectors/construction-work)327 - [Architecture, engineering & surveying](https://tendernation.io/sectors/architecture-engineering-surveying)118 - [IT services](https://tendernation.io/sectors/it-services)48 - [Business services](https://tendernation.io/sectors/business-services)161 - [Health and social work](https://tendernation.io/sectors/health-social-work)256 - [Sewage, refuse, cleaning & environmental](https://tendernation.io/sectors/sewage-refuse-cleaning-environmental)73 [All sectors ](/sectors) ## Nearby terms [Payments compliance noticeA notice public buyers publish twice a year showing how well they have met the 30-day payment rule on their public contracts.](https://tendernation.io/glossary/payments-compliance-notice)[Pipeline noticeAn annual notice from buyers spending over £100 million a year, listing contracts over £2 million they plan to tender in the next 18 months.](https://tendernation.io/glossary/pipeline-notice)[Preliminary market engagementConversations a buyer has with suppliers before publishing a tender, to shape its requirements, procedure and contract terms.](https://tendernation.io/glossary/preliminary-market-engagement)[Procurement thresholdsThe contract values, including VAT, at or above which a public contract must follow the full competitive rules of the Procurement Act 2023.](https://tendernation.io/glossary/procurement-thresholds)[Re-tenderA new procurement run for work that is already being delivered under a contract that is ending or being replaced.](https://tendernation.io/glossary/re-tender)[Reserved contracts (PPN 005)Competitions a buyer limits to certain kinds of supplier, such as local SMEs and VCSEs below threshold, or supported employment providers.](https://tendernation.io/glossary/reserved-contracts) [Read our procurement guides ](/guides)