Its official - The Labour Party has won the 2024 UK general election! But what have they said about public sector procurement the Procurement Act 2023? And, how will NHS, Central and Local Gov't procurement change under Sir Keir Starmer's new administration?
This article takes a deep dive into Labour's general election manifesto to uncover what the party has to say about UK public sector procurement.
Labour has proposed a five-point plan for public sector procurement, focusing on social value and wider benefits to society.
Key aspects of their approach include:
1. Social value emphasis: Labour plans to make social value considerations mandatory in all contracts, rewarding businesses that create local jobs, develop skills, treat workers fairly, and pay taxes responsibly.
2. Tax compliance: Labour aims to address the issue of companies with links to tax havens winning public contracts. They propose stricter rules to ensure contracts are awarded to companies that pay their fair share of taxes.
3. Support for smaller firms: The party pledges to help smaller businesses access public contract opportunities, streamlining the bidding process.
4. Transparency: Labour proposes implementing a public dashboard of government contracts, inspired by Ukraine's anti-corruption measures, to increase transparency in how taxpayer money is spent.
5. Fair work practices: While not explicitly mentioned in Labour's plan, the current Scottish Government's approach (which Labour may build upon) includes promoting fair work practices such as paying the real Living Wage and providing appropriate channels for workers' voice.
6. Environmental considerations: Labour is likely to push for greater emphasis on sustainability in procurement, aligning with their broader policy goals.
7. "Buying British": There are indications that Labour may prioritise local and national suppliers in procurement decisions.
It's worth noting that some of these proposals build upon existing policies implemented by the previous government and many of the Labour Party's commitments are yet to be fully defined. Labour's approach aims to use procurement as a tool to achieve broader social and economic goals, including supporting local economies, promoting fair work practices, and ensuring responsible corporate behaviour.
However, experts caution that implementing these policies may face challenges, such as the need to balance social value considerations with ensuring suppliers are capable of fulfilling contracts effectively, and the potential risk of making procurement decisions more subjective.
As we are key suppliers to the UK public sector we will be keeping an eye on developments in this discussion. We will be preparing for the end of October when it Is expected the Procurement Act will go live.
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