Procurement Act 2023 came into effect in February 2025

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Navigating the New UK Procurement Landscape: What Businesses Need to Know in 2025

Introduction

The UK's public procurement rules are undergoing significant reform, with the Procurement Act 2023 coming into effect from 24 February 2025. These changes will impact how businesses compete for government and corporate tenders, introducing new opportunities and challenges.

For companies like Nexclowd, specialising in cybersecurity compliance and accreditation (Cyber Essentials, Cyber Essentials Plus, and ISO/IEC 27001:2022), the new legislation presents an opportunity to support businesses in meeting security requirements and securing more contracts.

Here’s what you need to know about the changes and how Nexclowd can help.

Key Changes in UK Public Procurement (2025 Onwards)

1. A Simplified, More Competitive Procurement Process

The Procurement Act 2023 replaces previous complex rules with a single, flexible framework. This means:

  • A streamlined bidding process, reducing bureaucracy.
  • A focus on value for money, making it easier for SMEs to compete.
  • Increased transparency, with public contracts published openly.

2. Stronger Cybersecurity Requirements

With the UK government’s increasing focus on cybersecurity, businesses bidding for public contracts will need to demonstrate robust security measures. This aligns with the forthcoming Cyber Security and Resilience Bill, which will:

  • Mandate cybersecurity standards for suppliers handling sensitive government or citizen data.
  • Require businesses to demonstrate Cyber Essentials or ISO/IEC 27001 compliance in tenders.
  • Increase reporting requirements for cybersecurity incidents, ensuring government suppliers have a proactive security posture.

3. A Greater Emphasis on Social Value

The UK is moving towards a social value-driven procurement model. This means:

  • Contracts may favour businesses that demonstrate a positive impact on society (e.g., data protection, environmental sustainability, or ethical business practices).
  • Local councils and government agencies will be encouraged to support SMEs and social enterprises that align with these values.
  • Businesses that can prove their commitment to high cybersecurity and compliance standards will be seen as more trustworthy and reliable.

What This Means for Businesses Competing for Public & Corporate Tenders

To win contracts in this evolving landscape, businesses must ensure they are cyber-secure, compliant, and competitive. Key requirements will include:

1. Cybersecurity Compliance Will Be a Key Differentiator

Organisations bidding for tenders, especially those handling sensitive data, will need to demonstrate compliance with government-approved cybersecurity standards.

πŸ“Œ Solution: Cyber Essentials & Cyber Essentials Plus (CEP)

  • Cyber Essentials is already a requirement for UK government suppliers.
  • Cyber Essentials Plus provides additional security assurance through independent verification.
  • Demonstrating compliance improves credibility in tender applications.

πŸ“Œ Solution: ISO/IEC 27001:2022 Certification

  • The globally recognised gold standard for information security.
  • Many tenders, including those from large corporations, require suppliers to have ISO 27001 certification.
  • Mitigates risks and protects sensitive data, ensuring compliance with procurement security standards.

2. Data Protection & Privacy Will Be a Priority

As public and private sector buyers demand GDPR compliance and strict data security measures, companies must prove they can protect customer and employee data.

πŸ“Œ Solution: Penetration Testing & Cyber Risk Assessments

  • Regular penetration testing helps businesses identify vulnerabilities before cybercriminals exploit them.
  • Risk assessments demonstrate proactive security management, boosting credibility in tender submissions.

3. Proving Social Value & Ethical Business Practices

Public sector buyers now prioritise suppliers who align with ethical, environmental, and social responsibility goals. Cybersecurity is a crucial part of this.

πŸ“Œ Solution: A Strong Cybersecurity Framework = Social Value

  • Protecting sensitive citizen and corporate data demonstrates a commitment to ethical business practices.
  • ISO/IEC 27001 & Cyber Essentials certification proves businesses take cybersecurity and risk management seriously.
  • Preventing cyberattacks protects jobs and business continuity, reinforcing social and economic value.

How Nexclowd Can Help You Win More Tenders

At Nexclowd, we help businesses achieve the necessary cybersecurity certifications and compliance standards to remain competitive in tenders.

βœ… Cyber Essentials & Cyber Essentials Plus – Certification to meet government security requirements. βœ… ISO/IEC 27001:2022 Consulting – End-to-end support for achieving internationally recognised security accreditation. βœ… Penetration Testing & Cybersecurity Audits – Identifying and mitigating security vulnerabilities before they impact your business. βœ… Tender Compliance Advisory – Helping you align with cybersecurity requirements in procurement applications.

If your business wants to stay ahead in the new procurement landscape, ensuring strong cybersecurity compliance is essential. Contact Nexclowd today to learn how we can support your ISO/IEC 27001, Cyber Essentials, and penetration testing needs.

πŸ“© Get in touch today for a free consultation!

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