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. It also mandates reporting on the proportion of British goods and services procured.

Description

The bill makes two key amendments:

• Amendment to the Public Services (Social Value) Act 2012: This amendment requires public bodies to consider how procuring British goods and services might improve social, economic, and environmental well-being, and support good employment standards. Definitions for "British goods and services," "good employment standards and working practices," "small or medium-sized enterprise" (SME), and "collective agreement" are included.
• Amendment to the Procurement Act 2023: This amendment requires contract award notices to include details on how the public body complied with the obligations to consider British goods and services, the proportion of food procured originating in the UK, and an assessment of the impact of procurement thresholds on suppliers of British goods and services, particularly 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 cost implications are likely to be indirect and depend on the decisions made by public bodies in their procurement processes. No specific figures are provided in the bill text.

Groups Affected

• Public bodies: Will be required to consider British goods and services in their procurement processes and report on their decisions.
• British businesses (especially SMEs): May benefit from increased opportunities for contracts.
• Suppliers of goods and services (non-British): May face reduced opportunities.
• Workers: May benefit from the emphasis on good employment standards and working practices if the bill leads to an increase in contracts with companies that adhere to these standards.

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