Exciting times are ahead for SMEs as the landscape of public sector procurement is about to shift dramatically. With the new Procurement Act coming into force on 24 February 2025, small businesses and social enterprises are set to benefit from a more accessible and transparent system.
The Transforming Public Procurement (TPP) programme is designed to streamline the public procurement process, focusing on value for money while opening up greater opportunities for smaller enterprises to engage in public service delivery.
Here at Ask the Chameleon, we’ve long advocated for changes that simplify procurement and give SMEs a fair chance to win contracts. For too long, the process has been daunting and overly complex for small businesses, leaving many feeling locked out of valuable opportunities.
A Level Playing Field for SMEs
The UK government is the largest buyer of goods and services in the country, yet small businesses have historically struggled to compete against much larger corporations.
The new Act requires public sector to have more regard to any barriers specifically for SMEs, ensuring they have a genuine shot at securing contracts that were previously beyond their reach.
We’ve yet to reach the 33% target set by the previous Government, with research indicating that SMEs currently receive around 20% of spending. However, we hope these new regulations inspire buyers to prioritise opportunities for both new and existing SMEs and social enterprises, fostering a more diverse and inclusive supplier base.
One of the standout changes is the introduction of smaller ‘lots’ in contracts, making it easier for SMEs and social enterprises to compete for local authority work. Add to that the new Central Digital Platform, which consolidates published tenders and commonly used documents in one place, and the process suddenly becomes much more accessible.
Another huge win? Payment terms. The Act mandates that government entities must pay suppliers within 30 days—offering SMEs the financial stability they need to grow and thrive.
What This Means for Your Business
If you’re an SME looking to break into public sector procurement, now is the time to act. Here are some practical steps to maximise your chances of success:
- Stay informed: Keep up with the latest procurement updates, attend industry events, and build relationships with key stakeholders.
- Market your business effectively: Public sector buyers do their homework – make sure your website, marketing materials, and branding reflect your expertise.
- Specialise: Contracts often require niche skills, so positioning yourself as an expert in a particular area can be a game-changer.
- Invest in bid writing support: Writing winning tenders requires skill and experience. Professional bid writers can significantly enhance the quality of your submissions and improve your success rate.
As a long-time champion of SMEs, I wholeheartedly welcome this new framework. At Ask the Chameleon, we’ve helped businesses secure over £156.5m in contracts and £4.6m in charitable funding since 2015. These changes will make a real difference, enabling even more small businesses to access public sector opportunities, create jobs, and drive sustainable growth.
If you’re serious about tapping into this evolving landscape, let’s talk. There’s never been a better time to position your business for public sector success.