Procurement

Public procurement refers to the way government and other public sector bodies purchase goods, services, and works from suppliers. It covers everything from large-scale infrastructure projects to everyday services such as catering, cleaning, and IT support. In the UK, procurement accounts for approximately £400 billion of annual government expenditure.

Since 24 February 2025, public procurement rules have been governed by the Procurement Act. It is a legal framework built on principles of fairness, transparency, and competition. 

Public contracts must be advertised and awarded according to clear rules, designed to ensure value for money and prevent favouritism. Procurement is increasingly seen as a strategic tool to support innovation, promote sustainability and open doors for startups.

For entrepreneurs, engaging with public procurement can provide a stable and reliable source of revenue. Navigating tender processes can be complex, but online  data can help to simplify access. This creates opportunities for dynamic businesses to bring fresh ideas into the public sector.

Public procurement plays a dual role: delivering essential services for citizens, while stimulating economic activity and creating pathways for entrepreneurial growth. It is a vital intersection between government and business, ensuring public money delivers maximum value for society.

Further reading

• Cabinet Office — Public-sector procurement

• Cabinet Office — New public procurement rules to drive growth, opportunities for small businesses and exclude suppliers that fail to deliver

• Cabinet Office — Procurement policy notes

• GOV.UK — Find a Tender