What Does It Really Mean For Public Sector Procurement?
Efficiencies & Savings
Not just spending less. Delivering more for less.
The Budget keeps efficiency firmly on the agenda, building on £16bn of efficiencies and savings delivered in 2025–26, with almost £14bn of annual efficiencies planned by 2028–29.
While Government is so far performing comparatively stronger on savings targets, progress on efficiencies is less clear. The focus is increasingly on departments ‘doing more with less’ through efficiencies, rather than only reducing net spending through savings.
Our View
Commercial and procurement can contribute far beyond point-of-purchase savings. Better demand management, specifications, category strategies, and supplier and contract management can improve efficiency and reduce delivery costs year after year.
This demonstrates not just money saved, but Commercial’s wider contribution to departmental productivity.
Procurement’s Role In Wider Government Priorities
January 2027: New ‘UK supplier’ definition is planned
March 2027: New National Procurement Policy Statement is planned
Government increasingly expects procurement to support UK businesses and supply chains, social value and innovation. Purchasing power is also being directed more actively towards strategic areas including steel, shipbuilding, AI and energy.
Our View
Buying strategically still means buying well. Commercial teams will need to understand markets and supply chains in depth, develop UK capability, and retain competition and innovation, without making procurement slower or less effective.
Defence Procurement And Financing
- Up to £5bn over four years from the National Wealth Fund and British Business Bank for defence, dual-use and security sectors.
- Government is targeting a two-thirds reduction in time-to-contract for major platforms.
Defence investment is being matched by policy reform, with ambitions to cut time-to-contract by two-thirds alongside up to £5bn of public financing for defence.
Our View
Funding alone won’t accelerate delivery. Commercial models, supplier capacity and incentives are also needed to help industry respond at pace, as procurement and investment decisions become increasingly connected.
Devolution: Spending Power Is Moving Closer To Places
90% of people in England will now be covered by a devolution agreement. This is to help bring spending power and decision making closer to mayors and local authorities, creating more local influence over economic priorities.
Our View
Devolution creates opportunities to align spending with local jobs, SMEs and skills, but also a more fragmented commercial landscape. Commercial teams will need to balance local flexibility and priorities with fair competition and compliant procurement.
Get In Touch With Our Team
Speak to our experts about what these changes mean for public sector commercial and procurement teams: Darren Blackburn, Ben Pollock, Ross Hodgkins & Samson Anton
