Section 1

PROCUREMENT AT A CROSSROADS

Executive Summary

Public procurement in the UK is undergoing one of the most significant transformations in decades. The introduction of the Procurement Act 2023 and refreshed National Procurement Policy Statement (NPPS) promise to simplify processes, open up access for SMEs and social enterprises, and drive greater transparency, social value, and innovation.

To understand the impact of these changes on the public sector, Commercial Services Group commissioned a nationwide survey of over 500 senior decision-makers including procurement professionals across local government, health, housing, and education. The findings paint a picture of broad optimism, but also highlights critical gaps in strategic engagement, cultural readiness, and delivery capability.

Confidence high, but capability gaps remain

A large majority of respondents (84%) expressed confidence in their organisation’s ability to deliver on NPPS priorities, with 76% viewing the Procurement Act as a transformational opportunity rather than a compliance exercise.

Yet beneath this confidence, the data reveals signs of risk:

• Only 28% of respondents say they are fully prepared for the Act’s transparency requirements.
• Just under half (43%) say training and resources from central government leave gaps, and 16% are unaware of any support at all.
• A third (33%) of those with responsibility for public sector procurement have limited or no knowledge of the Act or the NPPS.
• Generally, procurement professionals are more concerned about preparedness than CEO / Senior Executives. They are less likely to say their organisation is fully prepared (33% procurement professionals / 49% leaders) and more likely to express concern about gaps in training (52% procurement professionals / 28% leaders).

Disconnect between board-level strategy and operational delivery

The reforms carry clear strategic implications, but many organisations report that procurement is still not recognised as a high priority at board-level. This disconnect raises concerns about long-term governance and resourcing.

While many organisations are treating this as a transformational opportunity, findings suggest that for some procurement reform seems to be led by middle management, not executive teams and therefore not being implemented at a strategic level.

Collaboration welcomed – but is the sector equipped to deliver?

The survey reveals strong support for collaborative procurement, with 79% likely to adopt collaborative procurement agreements. However, significant challenges persist:

• 30% of respondents are unsure if their organisation has all the necessary resources to support collaboration.
• 32% cite a lack of internal expertise as a key barrier.
• Financial constraints, coordination between parties and contractual complexity are also frequently cited challenges.
• Confidence in the ability of organisations to deliver is lowest amongst Health and Education sectors.

These issues are particularly relevant in the context of growing inter-agency working across devolved regions, integrated care systems, and place-based delivery models.

The culture shift still has a way to go

Although the Act is intended to foster transparency, fairness, and innovation, only a minority of organisations feel culturally and operationally fully prepared for such a shift.

Only 28% of respondents believe their organisation is fully prepared to operate in a more transparent environment.

Responses also highlight a major need for additional training (46% of respondents).

Uneven belief in broader public value delivery

While the Act is intended to help achieve broader objectives — including net zero, equity, and SME inclusion — confidence in delivering these outcomes is more limited:

• Just 42% think the Act will significantly support net zero goals.
• 24% say it will have little or no impact on promoting equity and inclusion.
• While 73% believe it will improve Small to Medium Enterprise (SME) and Voluntary, Charity and Social Enterprise (VCSE) access, only 6.7% said a major impact would be to simplify working with such organisations.

Low confidence in government infrastructure and support

Only slightly over one-third of respondents (35%) expressed strong confidence in the new Central Digital Platform’s ability to meet their procurement data and e-tendering needs, highlighting ongoing concerns about systems integration and digital readiness. Looking at differing attitudes by groups, it was also clear that CEO / Senior Leaders had much more confidence in the platform (64% expressing strong

confidence) than those engaged directly in implementation. For example, less than half (47%) of procurement professionals.

What’s next? Bridging the confidence-capability divide

The study suggests that public bodies are ready to embrace the spirit of the Procurement Act, but operational capability, leadership alignment, and cultural change still lag behind.

This presents a critical window for organisations to consider how they can deliver smarter procurement for their organisations. While the Procurement Act 2023 and NPPS will undoubtedly transform the procurement landscape this will take time and there are opportunities right now to streamline processes and access supplemental resources to help with procurement.

Partnering with organisations like Commercial Services Group support the public sector:

• Through compliant procurement Frameworks that offer immediate assurance and scalability.
• Via managed procurement services that can help address resource and expertise gaps.
• And by delivering targeted training, advisory services, and the change management support that can help embed reform meaningfully.

“This is not just a legislative change, it’s a mindset shift. Organisations that embrace this as an opportunity for smarter, more accountable procurement will be better placed to lead the future of public service delivery.”

Matt Johnson, CEO, Commercial Services Group

Section 2

THE NEW PROCUREMENT LANDSCAPE

Understanding the scope, ambition and relevance of reform

Public procurement plays a critical role in the delivery of UK public services, from health and housing to local government and education. With the passage of the Procurement Act 2023 and the updated National Procurement Policy Statement (NPPS), the Government has signalled its intent to modernise procurement and unlock greater social, economic and environmental value.

The legislation aims to simplify procurement processes, increase transparency, and make it easier for small businesses and VCSEs to compete for public contracts. It also introduces new expectations around innovation, risk management, and collaboration across contracting authorities.

These reforms are significant. They affect not only how public sector bodies will buy goods and services in the future, but also how they will demonstrate value, build trust with the communities they serve, and contribute to national priorities like net zero and driving economic growth.

A timely temperature check

Recognising the scale of this change, Commercial Services Group commissioned new research to assess how prepared the UK public sector is to deliver under the new rules and where more support, leadership or investment may be needed.

This report draws on a survey of 507 senior decision-makers and procurement professionals working across local government, health, emergency services, housing and education. The research was conducted online between 5th and 8th May 2025. Respondents were surveyed anonymously and were drawn from a verified and quality-controlled panel of public sector leaders.

Awareness is high – but not universal

While there are encouraging signs of awareness, a third of respondents (33%) report limited or no familiarity with the Procurement Act or the NPPS, including 10% of those at CEO or Senior Executive level. This is a critical issue, as many of the expectations now embedded in law will require organisation-wide understanding, not just specialist procurement knowledge.

A strong mandate for change if it’s embraced

Despite the knowledge gaps, most respondents share a clear belief in the direction of reform. Nearly three quarters (73%) believe the Act will lead to a more transparent and fairer procurement system. At the same time, however, 16% see the legislation primarily as a compliance burden, suggesting there is still work to do in shifting culture and mindset.

Why this matters now?

The Procurement Act is already in force. Its principles are already shaping how contracts are awarded, suppliers are engaged, and value is demonstrated across the public sector. Whilst many existing contract arrangements will continue in parallel, increasingly the impact of the legislation will start to be felt and gaps will become more apparent.

This research provides a snapshot of how organisations are responding. Not just technically, but culturally and strategically. It is designed to support public bodies in identifying strengths and gaps, and to inform the support offered by partners like Commercial Services Group in helping the sector move from awareness to action.

Section 3

FAMILIARITY AND STRATEGIC PRIORITISATION

Are public sector organisations ready to lead procurement reform from the top?

The Procurement Act 2023 brings wide-reaching changes, but successful implementation depends not just on technical understanding, it requires strategic ownership. This section explores how familiar public sector organisations are with the reforms, and whether they are prioritised at the highest levels of decision-making.

Encouraging levels of familiarity – with pockets of uncertainty

Two-thirds of public sector leaders surveyed (67%) say they are at least somewhat familiar with the Procurement Act and NPPS. However, one third (33%) admit to having limited or no knowledge of the reforms, a striking figure given the scale of the legislative shift and the implications for procurement operations across all tiers of the public sector.

This finding suggests that while the reforms are visible to many, a significant proportion of decision-makers (including some in strategic or leadership roles) may not yet fully understand the Act’s intent, requirements, or opportunities.

Mixed perceptions of strategic importance

When asked whether the reforms are currently seen as a strategic priority at board or senior leadership level, just over a third (34%) said it was considered a high priority. Nearly half (46%) described it as a moderate priority, while 12% rated it as a low priority and 8% said it was not on the agenda at all.

This suggests a variable picture, with some organisations’ leaders taking an active role to embed the necessary changes, while others not yet fully engaged.

Outside of local government, the situation is even more significant. Health and education organisations (both schools and higher education) report senior leaders placing a much lower strategic priority on the reforms.

This apparent gap is important.  The core objectives of the legislation and particularly the NPPS are of strategic importance and will need to be considered at board level decision making for their impact to be implemented.

Executive vs delivery perspectives

A closer look at the data reveals interesting differences by seniority. Among CEOs and senior executives, over half (54.6%) said the Procurement Act was a high strategic priority. However, amongst Heads of Procurement only 40% believed senior leaders had made it a high priority. Half (50%) of procurement leads said it was only a moderate priority, and 10% rated it as low.

This points to a possible perception gap between those setting strategy and those delivering it. It may be that senior executives believe procurement is well in hand, while those on the front line still feel under-resourced and under-supported.

This raises the question to the extent senior leaders truly see and appreciate the potential of procurement as key enabler of community collaboration, and social value.

Implications for sector-wide delivery

Without strategic alignment at the top, organisations may struggle to embed the behaviours and systems needed to meet the Act’s full intent. The risk is that procurement reform remains siloed, led by operational teams without the strategic authority or cultural backing to drive meaningful change.

One of the key aims of the NPPS include fostering greater collaboration, which will require senior teams engaged very early in the process to help uncover and create partnership opportunities.

Conversely, organisations that do see procurement as a strategic lever (not just a compliance function) are more likely to realise long-term benefits in areas such as innovation, public trust, and local economic resilience, delivered through greater collaboration.

Section 4

CONFIDENCE VS CAPABILITY – THE READINESS GAP

Broad optimism masks real concerns around training, transparency and delivery

Public sector leaders appear optimistic about their ability to respond to the Procurement Act and NPPS. However, the survey reveals a more complex picture beneath this confidence, one marked by inconsistencies in training, cultural readiness and preparedness for the full implications of the change.

High confidence levels – on the surface

An impressive 84% of respondents say they have confidence in their organisation’s ability to deliver on the NPPS priorities, including transparency, innovation, sustainability, and social value. This headline figure suggests widespread belief in public sector readiness.

However, this confidence does not always align with more practical indicators when we examine specific areas.

Only a minority feel fully prepared for transparency

Transparency is a core pillar of the new procurement regime, yet only 28% of respondents believe their organisation is fully prepared to operate in a more transparent environment. A further 36% said they were “mostly prepared”, while 23% described themselves as only “somewhat prepared”.

Worryingly, 13% said they were either not prepared or didn’t know. A potentially serious governance risk given the increased scrutiny introduced under the Act.

Significant training and knowledge gaps

When asked about training and resources provided by central government:

• 43% said there were gaps in the support provided
• 16% said they were unaware of any training or resources at all
• Only 36% felt fully prepared as a result of training received

These figures highlight the risk of inconsistency in how reforms are being implemented across organisations, with some teams well-equipped, and others still uncertain about what’s required.

Perceived gaps are highest amongst housing and ‘blue light’ organisations. Also, it is noticeable, but perhaps not surprising, that Heads of Procurement were much more conscious of gaps (52% – reporting some or significant gaps) than senior leadership teams (just 28%).

Targeting Support: Insights from Procurement Professionals

Beneath the surface-level confidence, many procurement leaders expressed a clear desire for more practical, grounded support in adapting to the new regulatory environment.

Several themes emerged across their open-ended responses:

1. Training and clarity remain key asks

A consistent message from respondents was the need for greater investment in staff training and clearer guidance tailored to real-world delivery.

2. Cultural preparedness is still mixed

Some expressed optimism and ambition, while others showed hesitation, suggesting a patchy cultural readiness across the sector.

“Our organisation is actively reviewing its procurement policies… but these things tend to cause more problems than they solve.”

Procurement Manager, Education

3. Cultural preparedness is still mixed

Some expressed optimism and ambition, while others showed hesitation, suggesting a patchy cultural readiness across the sector.

4. Transparency is welcomed – but unevenly understood

Some respondents clearly recognise the opportunity for greater accountability, while others worry about implementation challenges.

The confidence-capability divide: a risk to delivery

The findings suggest a growing gap between strategic optimism and operational capacity. While the intention is clearly there, many organisations may lack the consistent training, clarity and internal communication needed to ensure smooth implementation.

This inconsistency could lead to:

• Increased legal and reputational risk
• Missed opportunities to engage new suppliers or drive social value
• A growing divide between early adopters and underprepared organisations
  

Section 5

TRANSFORMATION OR COMPLIANCE?

Are organisations ready to embrace reform – or simply meet the minimum requirements?

The Procurement Act 2023 sets out an ambitious vision for a more transparent, efficient, and socially responsible approach to public sector procurement. But delivering that vision will depend on how the intended reforms are emphasised internally – as a transformative opportunity, or simply a new compliance obligation.

Strong appetite for change

Encouragingly, over three-quarters (76%) of procurement leaders surveyed said they view the Procurement Act as a lever for transformation, rather than just a tick-box exercise. Many see the potential to drive greater transparency, deliver social value, and unlock innovation in the way public contracts are awarded.

The most passionate believers in this potential are CEOs and Senior Executives, suggesting that they are willing to back the major changes required (54% – a major lever for transformation / 35% – somewhat transformative).

Interestingly, Heads of Procurement, while also very supportive, take a more pragmatic view about the true extent of the transformation it will deliver (37% – a major lever for transformation / 52% – somewhat transformative).

This signals a broad willingness across the sector to go beyond the minimum, and to use procurement as a mechanism to deliver wider organisational and social goals.

Areas of expected impact

When asked about the level of potential impact on strategic objectives, there was a strong level of belief that the changes being delivered could have significant benefits.

Amongst the highest expectations were significant improvements to enhancing public trust and reputation (54%), driving innovation and transformation (53%) and delivering better social and economic value to communities (53%).

This final finding is particularly interesting given earlier responses regarding how much of a strategic priority this is viewed.  To deliver these improvements will require collaboration and closer working with communities and it is unclear how the changes proposed in themselves will support this.

Persistent minority see reform as a burden

However, a notable minority (16%) said they primarily see the reforms as a compliance task. A further 9% were still unsure.

In education organisations in particular, there is a higher degree of cynicism about the true potential for meaningful change (26% share the view it is a compliance exercise).

These responses point to a risk. If these procurement changes are not clearly linked to mission outcomes or championed by leadership, there is a danger it could be interpreted as just another layer of red tape. In such cases, the cultural change needed to embed the Act’s principles may not take hold.

Attitudes likely to shape implementation

The way public bodies and their leaders view the reforms is likely to affect how well they are implemented. Where change is seen as a compliance task, organisations may do the bare minimum. But where it is seen as an opportunity to rethink procurement, the conditions are in place for innovation and more responsive service delivery.

This is particularly true if the NPPS is to deliver significant change in the future. In order to collaborate and to create more inclusive procurement processes leaders, their teams and partner public organisations will need to work more closely and much earlier in the commissioning process. 

The challenge now is to ensure that all organisations (regardless of size or sector) are supported to view and use the Procurement Act as a strategic tool, not just a statutory obligation.

Section 6

COLLABORATION AND PARTNERSHIPS

Is the public sector structurally equipped to deliver joined-up procurement?

The Procurement Act 2023 and NPPS place strong emphasis on collaboration, encouraging public bodies to work together to achieve greater efficiency, consistency, and social value.

This is particularly relevant in the context of place-based models of delivery, such as Integrated Care Systems and local devolution deals, where procurement increasingly involves multiple stakeholders across different service areas.

The appetite for collaborative working is clear. A strong majority of respondents (79%) said their organisation is likely to pursue collaborative procurement agreements as part of their future strategy.

A positive outlook with practical constraints

While overall intent is high, the picture becomes more complex when looking at capability. Around two-thirds (69%) of respondents believe their organisation has the resources to support collaboration. That still leaves nearly one in three organisations unsure or lacking confidence in their ability to do so.

When asked about the biggest barriers to collaboration, 37% identified a lack of internal expertise as a key concern. Financial constraints and coordination challenges between organisations were also common themes (46% and 32% of respondents respectively), alongside the complexity of aligning objectives and procurement processes across institutions (40%).

Expertise is crucial if organisations are to implement the future requirements through policy and process otherwise it will be difficult to achieve the intent that clearly exists.

These issues are particularly pronounced in sectors such as health and education, where legacy systems, different regulatory environments and strain on both finances and resources, can make joint commissioning more difficult to execute in practice.

Bridging the resource gap

The findings highlight the need for targeted support to enable more effective partnerships. In many cases, procurement teams may have the intent but not the bandwidth, tools, or guidance to lead complex collaborative processes. Without additional resource or advisory input, there’s a risk that collaborative procurement remains an ambition on paper rather than a reality in delivery.

Many respondents used the open-ended comments in our survey to express how they intend to bridge the resource gap.

“We will simplify tender documents, reduce unnecessary bureaucracy, and ensure that opportunities are clearly advertised. This is crucial so that smaller organisations can easily participate.”

Head of Procurement, Higher Education

Section 7

SOCIAL VALUE, ESG AND BROADER IMPACT

Are procurement reforms supporting broader public value goals?

One of the stated aims of the NPPS is to help public bodies go beyond price and efficiency, using procurement as a tool to deliver wider outcomes such as environmental sustainability, equity, and community benefit.

Are those ambitions are being embedded in public sector strategies, and how confident do organisations feel about turning policy into measurable impact?

Mixed confidence on wider impact

While confidence in achieving core procurement objectives remains relatively high, views on delivering broader public value are more mixed.

Only 42% of respondents believe the Act will have a major or significant impact on supporting their organisation’s net zero ambitions. A quarter (24%) say it will have little or no impact on improving equity and inclusion.

There is greater optimism when it comes to engaging with SMEs and VCSEs, with 73% saying the new regime will improve opportunities for smaller providers. Yet just 7% identified “simplifying how we work with SMEs” as one of the top three likely impacts of the Act.

This is a concerning finding.  The simplification of working with public bodies is likely to be essential to achieve this ambition of the NPPS and stemming from this other related community benefits may be more difficult to achieve.

This suggests that while many see potential, few have yet translated that into tangible reforms or supplier-facing improvements.

Opportunity vs delivery

These findings highlight a recurring theme throughout the research: the gap between intent and operational preparedness. Most respondents agree with the principle of delivering social value, but real-world pressures such as cost control, risk aversion, and resource constraints often limit the extent to which ESG objectives are prioritised in practice. Several comments reflected this tension:

“We already do a lot with community organisations, the challenge is proving impact and measuring outcomes in a consistent way.”

Head of Procurement, Housing

A supporting role for Commercial Services Group

These responses suggest that many public bodies need structured support to embed Environmental, Social and Governance principles into procurement practice. There is demand for practical resources to help teams weigh social value against traditional commercial metrics and evidence frameworks to demonstrate outcomes.

If procurement is to become a driver of inclusive, sustainable growth, public bodies will need trusted partners that can help them navigate complexity without losing focus on delivery.

Commercial Services Group is also itself a social value organisation.  All surpluses generated are shared with our public sector partners and invested by into public services and local communities.

Section 8

DIGITAL READINESS AND DATA TRANSPARENCY

Are procurement teams equipped for a digital-first future?

The Procurement Act 2023 introduces a new statutory requirement for transparency, underpinned by the future implementation of a Central Digital Platform. In theory, this will improve visibility, reduce duplication, and enable public bodies to share information more easily. All essential ingredients for a modernised, data-led procurement system.

But how confident are organisations that the digital infrastructure will support these ambitions?

Confidence is limited — and unevenly distributed

While many respondents expressed support for greater transparency, just over a third (35%) say they are ‘very confident’ that the Central Digital Platform will meet their organisation’s needs. Most respondents fall into the ‘somewhat confident’ or ‘not confident’ categories, with concerns emerging around integration, usability, and resourcing.

Some comments pointed to underlying scepticism:

For many public bodies, digital readiness is not just about confidence in a central platform, it’s about having the right tools, training and internal processes to collect, manage and report procurement data effectively.

A modern ambition meets legacy systems

Public sector procurement remains a mixed landscape when it comes to systems maturity (as noted by the National Audit Office ‘Transforming Public Procurement’ report from 2023). Some larger organisations have dedicated procurement platforms and integrated analytics, while others rely on manual processes and patchwork reporting systems.

This disparity risks undermining the objectives of the Procurement Act and NPPS. Without the capacity to capture and analyse procurement data, organisations may struggle to comply with new rules and miss opportunities to improve outcomes through better insight.

As public bodies prepare for the rollout of the Central Digital Platform, there is a clear opportunity to work alongside partners like Commercial Services Group to provide wraparound support that bridges the readiness gap.

For procurement reform to deliver on its promise, digital capability must be more than a compliance requirement, it needs to become a strategic asset. There is a recognition that it takes time for such systems to be implemented and to start delivering improvements but in the meantime, organisations can access fully compliant systems by working with partners such as Commercial Services Group. With the right support, public bodies can use the new ambitions of the Act not just to meet legal obligations, but to drive smarter, fairer procurement outcomes.

Section 9

CONCLUSIONS AND RECOMMENDATIONS

From policy to practice: closing the gap between intent and delivery

This report has captured a detailed snapshot of how public sector procurement professionals perceive the Procurement Act 2023 and the National Procurement Policy Statement (NPPS). The findings reveal a sector that is broadly optimistic, with high levels of stated confidence and intent. However, they also expose a recurring challenge: the gap between strategic ambition and operational preparedness.

Across key themes, from capability and training, to digital infrastructure, ESG, and collaboration, the research highlights areas where further support is not just helpful, but essential for successful implementation.

Key tensions identified:

• Confidence vs capability: While 84% of respondents say they are confident in delivering NPPS priorities, only 28% feel fully prepared for new transparency requirements.
• Strategic intent vs cultural readiness: 75% view the Procurement Act as a lever for transformation, but as significant minority (16%) still see it primarily as a compliance exercise — a risk that reform becomes a ‘tick-box’ task without senior leadership buy-in.

Willingness vs practical constraints: From collaborating with peers to engaging SMEs and measuring social value, public bodies are often aligned in principle but constrained by resources, systems and skills.

How the public sector can get the best from working with partners

The research clearly shows there is appetite for change, but also a need for hands-on, practical support that helps procurement teams translate legislation into lasting impact. Partners like Commercial Services Group are well placed to help bridge these gaps, providing solutions compliant for today and future proofed for the Act and NPPS changes.

Where Commercial Services Group can offer support:

• Compliant Frameworks and fully managed services: Offer scalable, compliant routes to market that reduce delivery risk and deliver efficiency.
• Training and upskilling: Provide practical toolkits to boost confidence in areas such as transparency, SME engagement and social value measurement.
• Contract management: Supply wraparound systems advisory services to help bridge process and compliance gaps.
• Strategic thought leadership: Help senior leaders understand the cultural and organisational shifts required to embed procurement reform.
• Joint delivery models and collaboration support: Facilitate place-based partnerships through shared service models, joint venture models, and advisory guidance on inter-agency working.
• Social value is an integral part of Commercial Services Group and our Procurement Services. We deliver impact each day for our customers across the public sector.
  

As procurement continues to evolve into a more strategic function, those organisations that can demonstrate real-world outcomes (not just compliance) will stand apart. With the right support, public bodies can realise the full potential of reform and use procurement as a powerful lever for public value.

ABOUT COMMERCIAL SERVICES GROUP

Commercial Services Group (CSG) delivers a vast range of products and services to customers in education, local government, housing and health. But across our 33 businesses we have one clear vision: to create value and impact for every customer, every day. We do that by working collaboratively and commercially. This in turn drives innovation and service excellence.

As one the UK’s largest publicly owned, privately run business, we offer the best of both worlds – a clear focus on commercial expertise and leading-edge thinking, alongside a deep commitment to transparency, compliance and social value. Our profits provide sizeable returns to the public purse but that’s just one part of our story. Ultimately, everything we do creates better places for people to live, learn and thrive.