Transforming Public Procurement: reforms, transparency and payment obligations
In recent months, the Government has combined new statutory implementation milestones under the Procurement Act 2023 with a series of policy announcements relating to the Government’s approach to Transforming Public Procurement.
Together, these developments affect how contracting authorities publish payment information, meet transparency and supplier registration requirements, and prepare for potential future reforms relating to supply chain resilience, social value and workforce protections.
This article provides a brief overview of:
- key payment, transparency and registration obligations now in force; and
- recent policy announcements and proposals indicating the direction of travel for public procurement reform.
What did the Government announce on potential procurement reform in March 2026?
On 26 March 2026, the Government published the outcome of its consultation Growing British industry, jobs and skills, alongside a package of measures intended to strengthen national capability, resilience and transparency through public procurement. These measures, which are proposals and will in some cases require the introduction of legislation, include:
National security and critical capability
The Government has indicated that new guidance will be published for central government bodies procuring in strategically important sectors such as steel, shipbuilding, artificial intelligence and energy infrastructure. The guidance is expected to address the use of national security exemptions to secure supply chains.
UK steel transparency
Proposals were also announced to increase transparency around the use of UK steel, including an expectation that authorities will confirm at the point of contract award whether UK steel is used or provide a robust justification where overseas steel is sourced. Further detail on implementation is awaited.
Shipbuilding commercial framework
Work is ongoing to develop a potential new commercial framework for shipbuilding, with the stated aim of providing greater pipeline certainty for UK shipyards.
How does the Government propose to use AI in public procurement?
The Government has also announced plans to introduce AI‑enabled tools to support procurement activity. These proposals are intended to reduce administrative burdens, improve document quality assurance and simplify supplier participation, particularly for small and medium‑sized enterprises.
Outsourcing, social value and workforce protections
The announcement also refers to a number of proposed reforms, including:
- a proposed Public Interest Test for certain central government outsourcing decisions involving contracts over £1 million;
- an intention to reinstate the Two‑Tier Code via secondary legislation to protect pay and conditions for workers on outsourced contracts; and
- a proposed redefinition of social value, aimed at delivering more meaningful, community‑led benefits at the heart of procurement and delivering skills, jobs and opportunities to those facing barriers to employment.
What Procurement Act 2023 obligations have now taken effect?
Alongside these policy proposals, a number of statutory obligations under the Procurement Act 2023 have now taken effect.
Section 70: What are the updated payment publication requirements?
From 1 April 2026, contracting authorities in England must publish details of payments exceeding £30,000 (inclusive of VAT) made under in-scope public contracts. Equivalent commencement for procurement regulated by the Welsh Ministers will follow separately.
This requirement applies only to procurements commenced on or after 1 April 2026. Payments relating to works, services or supplies under public contracts where the procurement procedure is commenced before that date are outside scope, even where the relevant contract is awarded after 1 April 2026.
Payment information must be published within 30 days of the end of each quarter, with the first publication deadline falling in July 2026.
What is the UK17 Payments Compliance Notice?
Authorities are also required to publish a UK17 notice reporting their average invoice payment times and compliance with the thirty‑day payment terms requirement set out in section 68(2) of the Procurement Act. The first reporting period for procurements other than those regulated by the Welsh Ministers ended on 31 March 2026, and the first notice for those procurements should be published by the end of 29 April 2026. For procurements regulated by Welsh Ministers, the first notice should be published by the end of 29 October 2026.
How do below‑threshold contracts and supplier registration work?
From 1 April 2026, suppliers for notifiable below‑threshold contracts must be registered on the Central Digital Platform, with their unique identifier included in the Contract Details Notice.
This applies to contracts with an estimated value of at least:
- £12,000 or more for central government authorities; and
- £30,000 or more for all other contracting authorities.
What should authorities and suppliers do now?
Contracting authorities should review upcoming procurements to identify those within scope of the new transparency and reporting obligations, and ensure internal systems are capable of capturing the required information. Suppliers should also ensure they are registered on the Central Digital Platform, to avoid delays or issues when participating in applicable procurements.
In particular, contracting authorities may wish to:
- identify contracts likely to fall within section 70 and consider how payment data will be flagged and reported;
- familiarise themselves with the section 70 publication requirements set out in the published implementation materials and guidance; and
- prepare, where applicable, for Q1 payment information to be published in July 2026.
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