Public Procurement: Outcome of the “growing British industry, jobs and skills consultation”

In June 2025, the Cabinet Office published the Industrial Strategy Consultation (the Consultation) which considered whether to make further reforms to public procurement. 

One of the key aspects of the Consultation related to the procurement of people-focused services (such as social care). A summary of the issues which the Government was considering can be found here. Our webinar covering the wider themes considered as part of the Consultation can also be found here.

The Government has now published a summary of the responses to the Consultation. In respect of people-focused services, the key points to note are: 

• The majority of responses agreed that there should be flexibility for contracts for people-focused services to be awarded without competition.
• The reason for supporting this approach was due to a preference for a person-centred approach to commissioning (rather than having a strict competitive procurement process), because it would welcome opportunities for a more collaborative/partnership approach between commissioners and providers, could benefit SMEs and VCSEs and could also help maintain service continuity where providers are performing well.
• The respondents who disagreed with having greater flexibility around procurement of these services tended to do so in relation to concerns over whether this could negatively impact value for money, quality of care, propriety and the market (for example making it harder for new entrants).
• The main alternative suggested to the current regime was that more should be done to improve commercial practice and to make greater use of the existing flexibilities in the Procurement Act 2023, rather than reduce competition.
• A repeated theme from supporters for greater flexibility to award contracts for these services without competition was that there should be some safeguards to ensure greater flexibility is not mis-used (for example, commissioners having to evidence value for money and ensuring that there is still appropriate transparency and the right levels of governance and accountability). 

How this feedback will be taken on board by the Government is not yet clear. Could we see people-focused services such as social care being carved out of the Procurement Act 2023 and being governed by a regime similar to the Provider Selection Regime instead? Or will further flexibilities be provided for under the Procurement Act 2023?

All the Government has stated is that the comments and feedback received will inform the Government’s planned reforms to public procurement. However, any future legislative proposals would be dependent on securing parliamentary time so it may be a while yet before we see what proposed changes could be made to people-focused services. 

If you have any questions in relation to the procurement of people-focused services, please do get in touch.

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