Overview

This bill aims to prevent modern slavery in the supply chains of businesses that win UK public contracts. It requires government departments to consider the risk of modern slavery when awarding contracts and introduces due diligence procedures to identify and address such risks.

Description

The Public Contracts (Modern Slavery) Bill mandates that UK government ministers and other procurement officials must actively work to avoid awarding contracts to businesses involved in modern slavery. The Secretary of State will create regulations outlining due diligence processes to assess whether a company is engaged in modern slavery.

Key aspects of the bill include:

• A definition of "modern slavery" that aligns with the Modern Slavery Act 2015.
• A definition of "economic operator" aligning with the Public Contracts Regulations 2015.
• Criteria for determining if a company is involved in modern slavery: exploitation within their supply chain, knowingly aiding exploitation through their services, and failing to take reasonable steps to eliminate such exploitation.
• A reporting mechanism to help determine whether a company has exploitation in its supply chain.

The bill applies to England, Wales, and Northern Ireland and will come into force two months after it becomes law.

Government Spending

The bill doesn't directly specify an increase or decrease in government spending. The cost will likely be associated with implementing and enforcing the new regulations, including developing the reporting mechanism and training for government procurement officials. No specific figures are provided in the bill text.

Groups Affected

• UK Government Departments: They will have new responsibilities in procurement processes to prevent modern slavery.
• Businesses bidding for public contracts: They will need to demonstrate due diligence in their supply chains to avoid being excluded from contracts.
• Suppliers and sub-contractors: They will need to meet higher ethical standards to ensure their clients win public contracts.
• Victims of modern slavery: The bill aims to protect them indirectly by reducing the demand for goods and services produced through exploitation.

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