Introduction

As the saying goes, a week is a long time in politics. The same is not normally said of procurement. Suppliers can spend months, or even years, building relationships with buyers, understanding their needs, and anticipating future tenders. The past weeks have been a bit of an anomaly. For those interested in procurement they have certainly felt long.

Since Rishi Sunak called a General Election, there has been a flurry of questions: What does this mean for private sector suppliers who regularly engage with the public sector? What does the pre-election period mean for ongoing procurements? Will this affect the implementation of the Procurement Act? And, if there is a change of government (as many predict), what will it mean for suppliers?

To help make sense of this, we have consulted government advice, past data, and expert opinion, to offer some clarity for the weeks, months, and years ahead.

Section 1: The effect of the pre-election period on public sector buyers and suppliers

What does the pre-election period mean for procurement?

The pre-election period imposes various restrictions on government activities to ensure impartiality and prevent the misuse of public resources for political purposes.

According to the General Election Guidance provided by the UK Government, "decisions on matters of policy, as well as other issues such as large and/or controversial commercial contracts... should be postponed until after the election, unless doing so would be detrimental to the national interest or wasteful of public money."

During the pre-election period, procurement activities may experience a slowdown, as major decisions and award notices for large contracts are likely to be postponed. Essential and routine procurement necessary for the smooth operation of government services will continue. Civil Service World highlights how guidance can lead to overcautiousness – “It is not always easy to decide whether an award of a high-value contract should go ahead as simply continuing essential business or whether it should be delayed as potentially contentious and not acceptable in the pre-election period.”

Suppliers should be actively engaging with buyers to understand if ongoing contract discussions are suitable to be pushed through as "Essential business". For contracts more likely to be pushed through into the new government, maintain open communications to understand how the scope of the contract could change.

Will the impact of a pre-election period differ across buyers?

We've identified how procurement may be impacted across Central, NHS and Local Government. As procurement expert Johnny Hugill summarises, as a general rule, “the further away you get from central government, the likelier it is for spending to stay the same."

Central Government:

• Major policy decisions and large contract awards will be postponed.
• Procurement will slow down but won’t come to a stand-still with routine business and essential procurements continuing. See current open and pretenders on Stotles at the end of section 1.

NHS:

• As with the central government, routine procurements, such as pharmaceuticals and medical supplies, will continue but major announcements and decisions will be postponed.
• Healthtech expert Liam Cahill commented in a recent blog, “summer is a bit of a dead zone for activity anyway,” so for healthcare suppliers, the election’s timing is convenient.

Local Government:

• Local government is still affected by the pre-election period, but the effects don’t impact procurement as much as in other areas.
• Some tenders may be brought forward to avoid delays.
• During previous elections, local government spending has often stayed the same during a general election, but Hugill points out that this year might be a bit different due to recent Council Elections. He notes, "We've recently had local elections, and some councils might face budget constraints or reshuffling. It's crucial to talk to those in councils to understand their specific plans and timelines, as their procurement activities might be less predictable this year."

What Should Suppliers Be Doing?

Suppliers should be reaching out proactively to the buyers they're in contact with to control what is controllable. To start, review post-July 4 work plans and adjust resources or schedules as needed to accommodate potential delays. From each vertical you sell into, spend the immediate term understanding what is in flight and what has the potential of being impacted between now and 2025. From there, you can shift focus to ensure a healthy pipeline remains for your teams. Liam Cahill's advice for healthcare suppliers could be applied more broadly: “So if it is like the proverbial early winter, then be like the squirrel and start focusing on gathering your acorns.”

If you want visibility on the tenders that were scheduled to come up before the election, you can filter for the next month on Stotles. Browse open tenders below.

Central Government

• Loch striven line heater
• Digital signage project
• Event management company

NHS

• Covid-19 vaccination service
• NHS national generic pharmaceutical

Local government

• Residential and nursing services
• Leisure management operator services

Section 2: Prepare for the public procurement landscape directly post-UK general election

What will the post-general election procurement landscape look like?

Many of the procurements that will now be delayed by the election will be pushed to after it. However, The Procurement Act is likely to have some varied and unpredictable impacts over the course of the year. We may see some contracts brought forward so they come under PCR2015. Procurement expert Martin Medforth notes, “Other buyers are thinking of waiting, why are we even thinking of running that procurement under the PCR 2015. It will be if the outcome will be so much more successful if we delay it and don't start it until November.”

There are around 8,000 government contracts set to expire in the next six months. Stotles can provide visibility into these contracts, allowing suppliers to filter and track upcoming tenders.

Will the Procurement Act be delayed or adapted?

In a recent report we unpacked what the Procurement Act might mean for suppliers, and how you should respond. While this advice still stands, since the election experts have highlighted the uncertainty that remains around the Procurement Act.

Gemma Waring noted, “Despite the general election throwing a bomb into the plans, the cabinet office has been quite reassuring.” Despite official reassurance, some uncertainty persists. Johnny Hugill added, “Everything the Cabinet Office has said has been signed off, but it also might just be too close that if a new government comes in, they might not actually want to immediately pass or implement legislation that's been passed by the former government. So the short answer is we don't know.”

The next government will also likely seek to address some of the challenges that come from the act’s implementation. Professor Albert Sanchez Graells, a leading procurement expert, told us, “Never mind spending sprees, or more likely cuts. Whoever is in government on 5 July will have to turn their minds to unaddressed issues, such as the need to significantly improve the training and upskilling supporting the rollout of the new procurement rules from October, and the need to boost public buyers' digital competency.”

What should suppliers be doing?

Aside from staying updated on the transitional arrangements for the Procurement Act, suppliers should be prepared for possible hesitancy in award notices and new tenders as the new government settles in. Anticipating changes to procurement timelines and strategies will be crucial during this period of uncertainty. Beside staying informed, suppliers should be taking active steps – talking to buyers, and using technical tools like Stotles to surface potential opportunities.

On a human level, Rikesh Shah advised, “Keep talking to your buyers … and don’t assume everything is working behind the scenes.” Engaging in open and continuous communication with buyers can help suppliers stay informed about any potential shifts or delays. Martin Medforth echoed this sentiment, recommending, “Don't be afraid of having the conversation. Certainly, by the time we get past the election, civil servants will open up again.”

From a technical perspective, suppliers can benefit from using Stotles to stay up to date with tender alerts. Suppliers can be promptly notified of new tenders and changes, and get visibility of tenders your competitors will be seeing.

Section 3: Explore the long-term effect on government procurement during a Labour government

How might a Labour government and the new Procurement Act impact future procurement

It's worth remembering that overall, the Procurement Act was supported by both major parties. It is not likely to be a question of if the Act will still go ahead, but there is still uncertainty about when and how it will be implemented. Although Labour has not clarified their position explicitly, recent statements are indicative of their position.

Many key Labour shadow ministers have criticised the Procurement Act for not going far enough:

• Angela Rayner, Deputy Leader of the Labour Party, stated, "This Bill fails to close the loopholes that saw obscene waste of taxpayers’ money through the VIP lane, it fails to mandate social value to secure investment in good British business, and it fails to create robust protections for workers."
• Dame Nia Griffith, Shadow Minister in the Cabinet Office, added, "...the same wasteful approach to emergency contracting rules that we saw during the pandemic, while decent, skilled local businesses are denied the same opportunity."

Johnny Hugill suggests there may be two other defining features of how Labour implements procurement. First, an emphasis on “Buying British,” prioritising local and national suppliers. Secondly, a greater push for sustainability and social value. For other public sector buyers with some degree of autonomy, such as the NHS and local government, there may also be “new directives that emphasise sustainability and social value.”

What types of procurement might increase under a Labour government?

What we know so far about Labour’s priorities?
(As of June 12, 2024 - updates to come on July 4, 2024)

Labour has been notoriously careful in their policy announcements. Their ‘First Steps for Change’ include priorities like economic stability, cutting NHS waiting times, new border security, GBE, and anti-social behaviour. Look out for more policy detail in the manifesto, slated for June 13.

We may be able to get some hints of future procurement policies by reviewing policy documents from key influential think-tanks and researchers who are influencing Labour policy. For example:

• Labour Together's work on 'National Securonomics' calls for the integration of national security with industrial strategy, advocating for targeted industrial policies to build Britain's economic resilience and security
• The Institute for Innovation and Public Purpose (IIPP) highlights mission-oriented procurement, suggesting that procurement should align with broader public missions to drive innovation and sustainability
• Finally, The Fabian Society emphasises the need for “better leaner procurement practice in defence, focusing on long-term savings instead of one-off reductions in spend.

If these influential policy-makers are anything to go by, we can expect Labour to focus on mission-oriented procurement, aligning with long-term social and environmental goals, and place a strong emphasis on innovation and market shaping.

How to get ahead in anticipating buyers' future needs and priorities?

Using Stotles to see the upcoming sales pipeline will be crucial for suppliers over the course of the next parliament. This allows you to view future buyers priorities before they have been announced as tenders, offering strategic advantages for early planning and engagement.

Conclusion

If you were hoping for a crystal ball to predict the future of UK procurement, we’re sorry to disappoint you. As you probably expected, uncertainties remain about the future of UK procurement and the General Election. So, in the face of this uncertainty, what should suppliers be doing? The key lies in staying informed and maintaining open communication with buyers. By leveraging the tools offered by Stotles, suppliers can gain visibility on current contracts that may be affected, be alerted to new tenders, and anticipate future needs and priorities. By doing so, suppliers can not only look ahead with increasing clarity, but also stay ahead of their competition.

Concrete tactics

In this report, we highlighted how the UK general elections and Procurement Act will affect the way procurement happens, making it even more important for you to stay on top of relevant opportunities. Leveraging the capabilities of Stotles can be pivotal for suppliers navigating the changes brought by the general election.

1. Spot upcoming opportunities: use the Stotles app to find upcoming expiring contracts to engage with buyers ahead of renewals.
2. Maintain open communication: Stotles sources the information of relevant decision makers so you can easily reach out and start engaging early.
3. Stay updated: use tender alerts with Stotles to hear about upcoming tenders and changes early.

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