New Procurement Act includes measures to protect national security

The Procurement Act has received Royal Assent and become law.

The Act aims to deliver simpler, more effective public sector procurement, and help small and medium-sized enterprises (SMEs) secure a greater share of approximately £300bn of expenditure per year.

It is also hoped that the new rules will protect against national security risks in public contracts. High-risk suppliers will be put on a public debarment list and be prevented from bidding for some categories of goods or services, such as areas related to defence and national security.

Minister for the Cabinet Office Jeremy Quin said: "We have taken the long-term decisions that will increase our powers to protect our security in our supply chains and procurement.

"This has included radical steps such as creating a National Security Unit for Procurement and giving Ministers the power to prevent suppliers from bidding for certain products where there is a risk to national security it will deliver lasting change which protects the UK for generations to come."

The changes are expected to come into force once secondary legislation is laid and after a six-month implementation period.

All public sector contracting authorities will be provided with access to a comprehensive, centrally-funded learning and development package and guidance materials to help them prepare.

Writing in The Telegraph, Ministers Jeremy Quin and Alex Burghart said: "The new rulebook also strengthens our national security, as part of this government’s commitment to take long term decisions for a brighter future.

"We are all too aware that the UK is a target for state-sponsored spying and that we need to protect it from those who seek to disrupt our democracy.

"Our approach must be scrupulous, with safeguards and deterrents built into every avenue of access to our public services; this is about actions rather than words."