Overview

This bill aims to increase the use of British goods and services in public procurement. It amends existing legislation to require public bodies to consider the use of British goods and services, particularly from small and medium-sized enterprises (SMEs), when making purchasing decisions and to report on their efforts.

Description

The bill makes two key amendments:

• Amendment to the Public Services (Social Value) Act 2012: This amendment adds a requirement for public bodies to consider how procuring British goods and services can improve social, economic, and environmental well-being within the UK, and to support good employment standards and practices. Definitions for "British goods and services," "good employment standards and working practices," "small or medium-sized enterprise" are provided.
• Amendment to the Procurement Act 2023: This amendment requires contract award notices to include details on how obligations under the Public Services (Social Value) Act 2012 have been met, specifically regarding British goods and services. It also mandates reporting on the proportion of food procured from within the UK and the impact of procurement thresholds on British suppliers and SMEs.

The bill applies to England and Wales for Section 1, and to England, Wales, Scotland and Northern Ireland for Sections 2 and 3. The commencement date will be set by the Secretary of State.

Government Spending

The bill is not expected to directly increase or decrease government spending. The impact will be indirect, potentially leading to increased spending with British suppliers, but the extent is uncertain and dependent on purchasing decisions made by public bodies.

Groups Affected

• Public bodies: Will face additional requirements in their procurement processes and reporting.
• British suppliers, particularly SMEs: May benefit from increased opportunities for contracts.
• Non-British suppliers: May face reduced opportunities to secure public contracts.
• Workers in related industries: Could experience job creation or shifts in employment based on changes in procurement practices.

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