The Procurement Act 2023 finally came into force on 24 February – and it’s big news for social enterprises. In a statement, the Government recognised that “small businesses and social enterprises are more likely to generate diverse and thriving local economies, creating jobs and economic growth”.
Before the Act went live, the government released the National Procurement Policy Statement (NPPS), which urged government departments, the NHS, local authorities, schools, and other public bodies to maximise the amount they spend annually procuring goods and services from small and medium-sized enterprises and social enterprises, as part of a national priority to drive economic growth.
The new Act is set to simplify bidding for and negotiating contracts with the public sector by introducing a more flexible process, which should reduce bureaucratic barriers for social enterprises. Payment will be more prompt, with 30-day payment terms on more contracts being promised, and suppliers can also expect feedback on their tenders from public bodies.
The key to this slicker way of working is the new central digital platform, billed as ‘an enhancement to the existing Find a Tender service’. Registration is more straightforward, and you can store your core business details, making it easier to share your information with contracting authorities and use it for multiple bids. All public procurement opportunities are visible and searchable, and you can also set up alerts, making it easier to stay aware of relevant available tenders.
The new Procurement Act emphasises social value in public sector contracts, aiming to create a more inclusive and supportive environment for social enterprises and helping them compete more effectively for public sector contracts.
Social investment can provide the necessary capital for social sector organisations to scale their operations and enhance service delivery. This financial support can help organisations become more competitive when bidding for public sector contracts.
At Livv Investment, we can help organisations demonstrate their social impact, making them more attractive to public sector commissioners.
Livv and Flourish is our social investment fund for the Liverpool City Region. It’s a £4.25m fund offering unsecured loans along with a partial grant element, which can help social organisations invest in capacity-building initiatives, such as additional staff, training, improving systems, buying assets, or providing working capital to support contract delivery.
We also provide wrap-around support and, as an Access Point for the Reach Fund, can support organisations to apply for an ‘investment readiness’ grant, a stepping stone to apply for social investment. Get in touch for a friendly chat – we’d love to hear from you!
