The big shake-up is outlined in the procurement green paper published today, which sets out plans to replace hundreds of complicated and bureaucratic EU rules with simpler and more flexible rules.
If passed by Parliament next year, these will give Government more power to exclude previously poorly performing suppliers and contractors, such as firms that have failed to deliver projects on budget or on time.
Firms could also can also be banned for a lax approach to safety, or environmental concerns.
Chancellor of the Duchy of Lancaster Steve Barclay said: “Leaving the EU gives us the perfect chance to make our own rules for how the government’s purchasing power can be used to promote strong values.
“While doing so we’re increasing transparency and ensuring that procurement remains fair and open.
“These simpler and more flexible rules will also make it easier for small businesses to win work – placing levelling up at its heart.”
Under the current rules, suppliers can only be excluded from winning new government contracts if there has been a significant breach of contract.
The changes will make it easier for small and medium size businesses to bid for and win government contracts.
This includes one single central platform for suppliers to register with, so they only have to submit their data once to qualify for any public sector procurement.
Central and local Government procurers will be able to give more weight to bids that create jobs for communities, build back better from the Covid-19 pandemic and support the transition to net zero carbon emissions.
These ‘social value’ factors mean that buyers don’t just consider price alone.