Today, the Procurement Act 2023 comes into force. Public procurement has a powerful role to play in building economies that work with and for people, rather than against them.

The question is whether the Procurement Act 2023 will be – a game changer and make a difference to local communities – or a name changer with the new law (excluding Scotland) making little difference to our daily lives.

It is worth remembering that procurement is a devolved responsibility within the UK. Countries like Scotland and Wales have used their legal frameworks to create procurement systems that have the opportunity to deliver public value and be market shaping. England, on the whole, has lagged behind the rest of the UK (including Northern Ireland).

Will the Procurement Act 2023 provide the opportunity to catch up? The National Procurement Policy Statement published last week is ambitious for the UK and sets us on the right track. It posits that public procurement is a key lever in delivering goods and services that drives sustainable economic growth and raises living standards.

The Statement highlights how procurement can kickstart economic growth through providing opportunities for small businesses and social enterprises across the country and providing high quality jobs that offer fair wages and good working conditions. It can also break down barriers to opportunity by removing barriers to entry for under-represented groups while building a strong NHS through supporting good physical and mental health by providing high quality jobs and encouraging suppliers to recruit from economically in active “cohorts”.

Increasing procurement spend with small businesses and social enterprises is now a national priority. Contracting authorities should consider fair working conditions, appropriate pay, progression and provision of skills opportunities throughout the commercial lifecycle. In contracts where there is a large proportion of labour costs ie, in typically low paid, lab0ur intensive industries Fair Work outcomes including fair pay, employee voice and fair working conditions should be considered as a priority in central government contracts. This sets a great example for other public authorities to follow.

Under the Act, all contracting authorities must have regard to the importance of maximising public benefit. The Statement points out that applying social and economic value requirements can broaden the public benefits that are delivered through the life of the contract. It highlights the value of co-designing requirements with customers, front line workers and communities and working in partnership across geographic boundaries.

There is nothing in the Policy Statement with which we would disagree. In fact, there is much to applaud. We are delighted that many of the issues on which we have campaigned are being addressed seriously. But will fine words lead to action? How far and how fast can change happen. For as the Statement says “new ways of working may be needed across contracting authorities to understand how procurement can contribute to local outcomes and priorities, adopting a whole organisation approach so that policy and strategy engage earlier with commercial teams.”

There is little doubt in our minds that new ways of working are required. For too long procurement has been a closed industry dominated by big business and law firms that appear to have called the odds, with little analysis of overall quality and public benefit derived from the procurements themselves.

A new public interest test will be introduced (at least for central government) for contracting authorities to assess at the outset of a process whether work should be outsourced or if could be done more effectively and drive better value for money, in house. This is welcome news. It could help to focus minds on the importance of commissioning and analysing the public value of what is to be commissioned and why, rather than simply repeating procurements without analysis of their public benefits.

That being said procurement is not about to go away. If change is going to happen closed doors need to be opened, new conversations begun and new approaches adopted – not only within commissioning authories but between commissioning authorities, civil society, social entrerprises and the private sector. We cannot leave it to central government, nor commissioning authorities alone, we have to be part of that change. All of us who believe that public procurement should be delivered for public good need to take active steps to deliver it, however small.

So if we want procurement to deliver for local communities, now is the time when the hard work begins. Let’s join together to build a procurement system fit for purpose that works for the public benefit not against it. Procurement for public good. We’ll be knocking on doors and see if they open. We will keep knocking until they do.