What public sector buyers need to know about the new National Procurement Policy Statement – Procurement Essentials

The UK Government published a new National Procurement Policy Statement (NPPS) which came into effect on 24 February 2025 alongside the Procurement Act 2023.

This strategic statement lays out the key objectives public sector organisations should look to achieve when they spend public money through procurement.

Contracting authorities must “have regard” to the NPPS when they carry out any procurement activity, with some limited exceptions. 

What does this mean for public sector buyers?

The overarching aim of the statement is to ensure value for money through public sector procurement, supporting the Government’s 5 missions.

The statement lays out 3 key pathways to achieving this value for money that contracting authorities should consider:

• driving economic growth
• delivering social and economic value
• building commercial capability

The full NPPS contains further detail on each of these 3 pathways, as well as key deliverables to help contracting authorities understand how to contribute to each.

The Procurement Act 2023 says contracting authorities should be able to show that the goals of the NPPS were considered as part of any given procurement. It is therefore recommended for buyers to document their decision-making processes in relation to the NPPS.

What action do you need to take now?

Everyone involved in the procurement process across the UK public sector has a role to play in delivering the strategic aims set out by the Government. 

The NPPS should be read and its aims understood not just by procurement teams, but by the strategic leadership and key decision-makers in contracting authorities. It should then be considered every time you, as a buyer, carry out a procurement using public money, and your activity aligned to these aims where practical.

This means aiming, in your procurement decisions, to achieve value for money by using public money efficiently, promoting social value, and building your own commercial capability. 

As a buyer, you should assess your own processes and procurement priorities, ensuring they are compatible with the key aims of the NPPS and identify opportunities to contribute to them, as well as any potential roadblocks. 

This could include:

• creating action plans for increasing your work with SME and VCSE suppliers 
• considering any upskilling opportunities needed to improve commercial capability 
• assessing your modern slavery and carbon net zero policies to make sure they are fit for purpose 

Supporting these aims over the longer term will keep you in step with other contracting authorities as they adapt to meet the new aims.

Finally, the aims should be applied proportionately to the procurement in question. This means you need to keep your procurement goals realistic for the contract size. 

Meeting NPPS requirements does not mean that you need to create extra savings or add social value measures that are not relevant and proportionate to the contract. 

Find out more

You can read the National Procurement Policy Statement along with accompanying guidance on GOV.UK.

You can also now find all of our Procurement Essentials articles in one place on our website.