The effect of the 2024 pre-election period on public sector buyers and suppliers
A guide on the pre-election period's effect on public procurement
Introduction
Since Rishi Sunak called for a general election, we have entered the pre-election period, a period of heightened sensitivity and caution. For anyone involved in public-sector procurement, this raises 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?
To help make sense of this, we have consulted government advice, past data, and expert opinion, to offer some clarity for the weeks ahead.
What does the pre-election period mean for public 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.
Understand the impact of the pre-election period across government 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."
How can public sector suppliers maximise government tender wins during the pre-election period
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
NHS
Local government
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.