Brexit has significantly reshaped the UK’s procurement landscape. Since leaving the European Union, the UK has moved away from EU procurement rules, introducing reforms to simplify processes, increase flexibility, and promote local businesses. For suppliers and contracting authorities, understanding these changes is crucial to navigating the new procurement environment effectively.
This article explores how Brexit has changed UK procurement rules and what businesses need to know to stay competitive.
The Shift from EU Procurement Regulations
Before Brexit, the UK followed the EU’s Public Procurement Directives, which governed how public sector contracts were awarded. These directives emphasized transparency, competition, and non-discrimination across the EU member states.
Since Brexit, the UK has taken steps to develop its own procurement framework. The government aims to create a more flexible and SME-friendly system while maintaining fairness and value for money.
Key Differences Post-Brexit
No Longer Subject to EU Procurement Directives: The UK now has the freedom to modify its procurement rules.
Find a Tender Service (FTS) Replaces OJEU: High-value UK contract notices are now published on Find a Tender Service (FTS) instead of the EU’s Official Journal (OJEU).
Greater Focus on Local Suppliers: The UK can prioritize British businesses without EU-wide competition rules.
Simplification of Procedures: The government is reducing red tape to make bidding easier, especially for SMEs.
New Procurement Legislation: The Procurement Act 2023 introduces further reforms to increase transparency and efficiency.
Key Changes in UK Procurement Rules
1. Introduction of the Find a Tender Service (FTS)
Since January 1, 2021, the Find a Tender Service (FTS) has replaced the OJEU for high-value public sector contract notices. All new UK government contracts meeting the threshold are published on FTS, making it the primary source for suppliers to find opportunities.
What This Means for Businesses:
UK suppliers no longer need to monitor OJEU for contract notices.
Businesses should register on Contracts Finder (for low-value contracts) and FTS (for high-value contracts) to access UK opportunities.
2. Greater Flexibility in Procurement Procedures
The UK government has introduced simplified procurement processes to reduce bureaucracy and encourage innovation. Under the Procurement Act 2023, there is an emphasis on:
More streamlined bidding processes for suppliers.
Increased use of direct awards where justified.
Greater negotiation flexibility between buyers and suppliers.
These changes allow public bodies to award contracts more efficiently, particularly in urgent situations or when dealing with trusted suppliers.
3. Preference for UK-Based Suppliers
While still adhering to international trade agreements, the UK government is now more focused on ensuring public sector contracts benefit British businesses. This aligns with the government’s goal of spending more with SMEs and boosting the domestic economy.
What This Means for Businesses:
More opportunities for UK-based suppliers to secure government contracts.
Increased support for small and medium-sized enterprises (SMEs) in public procurement.
Encouragement of innovation and social value in contract awards.
4. New Transparency and Data-Driven Approach
The UK is moving towards a more transparent procurement system with better data sharing. The Procurement Act 2023 introduces requirements for:
Centralized digital procurement platforms for better contract visibility.
More open data sharing to ensure accountability and reduce fraud.
Clearer reporting on contract performance and social value contributions.
5. Changes in Evaluation Criteria and Awarding Contracts
Previously, UK public sector contracts had to follow strict EU Most Economically Advantageous Tender (MEAT) criteria, focusing on price and quality. Post-Brexit, UK procurement rules allow for more flexibility in contract awards, with additional emphasis on:
Innovation and social value (e.g., sustainability, local job creation).
Supplier past performance as a key evaluation factor.
Broader economic benefits rather than just cost-effectiveness.
6. Simplified Rules for SMEs
One of the biggest criticisms of the EU procurement system was that it favored large companies due to complex regulations. Post-Brexit, the UK is actively making procurement easier for SMEs by:
Breaking contracts into smaller lots to allow SMEs to compete.
Reducing pre-qualification requirements to lower barriers to entry.
Encouraging a “tell us once” system to avoid repetitive paperwork.
How Businesses Can Adapt to the New Procurement Rules
1. Register on the Right Platforms
To take advantage of post-Brexit procurement opportunities, businesses should:
Sign up for Find a Tender Service (FTS) for high-value contracts.
Monitor Contracts Finder for lower-value government opportunities.
Explore Crown Commercial Service (CCS) frameworks to become a pre-approved supplier.
2. Focus on Social Value and Innovation
With new social value requirements, businesses should:
- Highlight their contributions to environmental sustainability, local employment, and community benefits.
- Emphasize innovation and how their solutions support government priorities.
3. Stay Compliant with New Procurement Regulations
Suppliers must ensure they meet the latest UK procurement requirements, including:
Financial stability and regulatory compliance.
Cybersecurity standards (e.g., Cyber Essentials certification for IT contracts).
Ethical and sustainable business practices to align with government goals.
4. Build Relationships with Public Sector Buyers
With greater flexibility in awarding contracts, businesses should:
Attend market engagement events and networking sessions.
Establish credibility through past performance and case studies.
Be proactive in understanding the needs of public sector buyers.
