The Procurement Act 2023 for small suppliers: what changed and what to do first

On 24 February 2025 the rules for how most UK public bodies buy goods, services and works changed. The Procurement Act 2023 now applies to new procurements, and the government says it is meant to make bidding simpler, particularly for small businesses, start-ups and social enterprises (GOV.UK short guide for suppliers). If you sell, or want to sell, to councils, the NHS, schools, universities, housing bodies or government departments, these are the changes that matter day to day.

Who it applies to (and the Scotland exception)

The Act covers new procurements in England, Wales and Northern Ireland, and by UK-wide (reserved) bodies across the UK. Procurements that started before 24 February 2025 carry on under the old rules, such as the Public Contracts Regulations 2015, until those contracts end (GOV.UK transitional guidance). Devolved Scottish authorities, such as Scottish councils, are generally excluded and keep following Scottish procurement law (GOV.UK devolved authorities guidance). If you mainly sell to Scottish public bodies, watch Public Contracts Scotland as well as Find a Tender.

1. One free platform: Find a Tender

Find a Tender is now the Central Digital Platform. From 24 February 2025, notices about new UK procurements are published there, both above and below threshold, except below-threshold notices in Scotland (Find a Tender). Notices must go on the platform first and can then be repeated on a buyer’s own portal (GOV.UK Central Digital Platform guidance). It is free to use, and you shouldn’t pay to view public-sector opportunities (GOV.UK). You can search it and set up alerts at no cost.

2. Register once, reuse your details

You sign in with GOV.UK One Login, register your organisation and get a unique identifier, which you share with a buyer before a contract is awarded (GOV.UK registration guide). You can then store your core supplier information once, including basic details, economic and financial standing, connected persons and exclusion grounds, and share it only with the buyers you choose (GOV.UK). You only need to register when you want to bid. If you had an old Find a Tender account, you need to register again (GOV.UK). Small firms can declare SME status. The guidance definition is fewer than 250 staff and turnover of £44m or less, or a balance sheet of £38m or less (GOV.UK SME definition).

3. More warning before a tender

The Act adds notices that appear before a tender, which gives small suppliers time to prepare:

Pipeline notices. A body expecting to spend more than £100 million in the coming financial year must publish one within 56 days of the year starting, listing contracts over £2 million that it plans to tender in the next 18 months (section 93; GOV.UK pipeline guidance).
Preliminary market engagement notices. If a buyer talks to the market before a tender, it must publish a notice first or explain why not in the tender notice (section 17). See our guide on how to respond to one.
Planned procurement notices. These are optional advance notices. If one is published at least 40 days and no more than 12 months before the tender, the buyer may cut the tendering period to as little as 10 days (GOV.UK planned procurement guidance). Seeing one is a cue to get ready now.

4. Lower-value contracts: simpler rules

A below-threshold contract is “notifiable” from £12,000 including VAT for central government (now including NHS trusts) and £30,000 including VAT for other bodies such as councils (section 87; GOV.UK below-threshold guidance). If the buyer advertises one, it must publish a tender notice on Find a Tender and set reasonable time limits that are the same for every supplier (section 87). It can’t add a separate suitability stage (a pre-qualification stage) to narrow the field when it invites tenders, apart from some larger works contracts (section 85). It must also consider the barriers SMEs face (section 86). Buyers can still invite quotes from a pre-selected group without advertising, and some can reserve competitions to UK or local suppliers (GOV.UK). So being known to local buyers still matters. Above the thresholds, the full rules apply: from 1 January 2026, goods and services contracts from £135,018 for central government and £207,720 for other bodies, and works from £5,193,000, all including VAT (GOV.UK thresholds guidance).

5. 30-day payment, down the supply chain

Public contracts now carry a term that a valid invoice is paid within 30 days (section 68). The same applies to regulated below-threshold contracts (section 88) and to sub-contracts that help deliver a public contract (section 73). A valid invoice needs at least your name, a description of what you supplied, the sum and a unique ID number, plus anything else the contract requires (section 88). If the buyer thinks an invoice is invalid or disputes it, it must tell you without undue delay. The Procurement Review Unit can look at concerns about late payment (GOV.UK).

6. Frameworks, lots and dynamic markets

Buyers must consider splitting contracts into lots and give reasons if they don’t (section 18). New open frameworks must reopen to new suppliers at least once in their first three years (GOV.UK frameworks guidance), and dynamic markets, which replace dynamic purchasing systems, must stay open for suppliers to join at any time (GOV.UK dynamic markets guidance). Our guide to finding council and public-sector contracts covers how to use them.

Practical first steps

Set up a free Find a Tender search and alert for what you sell and where.
Create your GOV.UK One Login and register your organisation, so it’s ready before your first bid.
Gather your core information: Companies House number if you have one, address, recent accounts, and details of connected persons.
Read the pipeline notices of the big buyers in your area.
Reply to market engagement notices that fit what you already do.
Put the 30-day payment rule and your invoice details into your own process.

In the US? Read how to find federal contracts as a small business on SAM.gov.

Quick checklist

You know whether your buyers follow the Procurement Act 2023 or Scottish rules
You have a saved Find a Tender search and email alert
Your organisation is registered on Find a Tender and you know your unique identifier
Your core supplier information is complete and up to date
You check pipeline, market engagement and planned procurement notices, not just tenders
Your invoices include the minimum information for 30-day payment

FAQ

Does the Procurement Act 2023 apply in Scotland?

Not to devolved Scottish authorities such as Scottish councils, which generally follow Scottish procurement law. UK-wide bodies buying in Scotland do follow the Act (GOV.UK).

Do I have to pay to use Find a Tender?

No. It is free to use for everyone, and you shouldn’t pay to view public-sector opportunities (GOV.UK).

Is Contracts Finder still used?

Yes, for procurements that started before 24 February 2025, which continue under the old rules. New below-threshold notices go on Find a Tender (Find a Tender; GOV.UK).

When do I need to register?

Only when you want to bid, but the details take time to gather, so it helps to start early (GOV.UK).

Can you guarantee we’ll win a contract?

No. No one honestly can. We help you find relevant notices early and decide where your time is best spent.

Official sources

Laws and guidance change. Check the sources above for the latest position. For advice on your own circumstances, consult a solicitor.