Procurement Bill completes passage through Parliament

The Procurement Bill was given Royal Assent on Thursday 26 October and is now an Act of Parliament (law).

The Procurement Bill aims to reform the UK's public procurement regime following its exit from the European Union (EU), to create a simpler and more transparent system not based on transposed EU Directives. It also seeks to ensure that the government continues to pay fair prices on single-source defence contracts while providing value for money.

Consideration of amendments

The bill was considered by the House of Lords between 25 May and 13 December 2022, before passing to the House of Commons.

Members of the Lords then considered Commons changes (amendments) to the bill for a second time.

Forced organ harvesting

During the first round of ‘ping pong’ in the Lords, members added an alternative section to the bill to allow discretionary exclusion of suppliers engaged in forced organ harvesting.

MPs in the Commons removed this amendment on the basis that this is already covered by professional misconduct regulation.

Lords members have now considered an amendment to accept the change made by the Commons, which was agreed to without a vote.

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Explore further information

Read background on the bill in the House of Lords Library Procurement Bill [HL] briefing.

What's happened so far?

Consideration of amendments: 11 September

Members of the Lords considered Commons changes (amendments) to the bill on 11 September.

Lords divisions

There were also three divisions (votes) on proposed Commons changes to the bill.

NHS contracts

The first vote was on Motion 1A, which sought to reinstate wording previously entered into the bill by the Lords and later removed by the Commons. The amendment ensures that the definition of a 'public authority' bound by new contract tendering rules includes the National Health Service.

Members voted 76 in favour and 187 against, and so the wording was not reinstated.

National procurement policy

During the Lords consideration of the bill, members agreed a change which listed a set of principles and guidelines the government should follow before publishing its national procurement policy.

This was removed by MPs in the House of Commons, with no alternative suggested.

Lords members voted on a revised list, with 173 voting in favour and 187 against, so the change was not made.

Forced organ harvesting

During report stage consideration in the House of Lords, members agreed to insert a new section into the bill which allows for the discretionary exclusion of suppliers engaged in forced organ harvesting.

MPs in the Commons removed the amendment, reiterating the government's stance that the issue is already dealt with under the existing exclusion grounds.

Lords members have now considered a proposed alternative amendment, which focusses solely on forced organ harvesting and removes reference to other activities relating to the unethical treatment of human tissue.

Members voted 158 in favour and 153 against, and so the new change was agreed.

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Third reading: Tuesday 13 December

Third reading is a chance for members to ‘tidy up' a bill, making small changes to ensure it is effective.

One government amendment (PDF) (change) was put forward ahead of third reading regarding the definition of a centralised procurement authority, and this was agreed to.

Members also discussed the progress of the bill through the House at the conclusion of Lords stages.  

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Catch up on Parliament TV
Read the Lord Hansard transcript

Report stage day two: Wednesday 30 November

Proposed changes

Members speaking on day two of report stage put forward amendments (PDF) (changes) to discuss.

Lord divisions

There were three divisions (votes) on proposed changes to the bill.

'VIP' lanes for future contracts

The first vote was on amendment 72, which ensures there is no preferential treatment on suppliers connected to or recommended by members of the House of Commons or members of the House of Lords.

Members voted 201 in favour and 220 against, so the change not was made.

Forced organ harvesting

The second vote was on amendment 91, which provides a discretionary power to exclude suppliers from being awarded a public contract who have participated in forced organ harvesting or unethical activities relating to human tissue.

Members voted 191 in favour and 169 against, so the change was made.

Removal of supplier

The final vote was on amendment 94, which creates a timeline for the removal of physical technology or surveillance equipment from the government’s procurement supply chain, where there is established evidence that a provider has been involved in modern slavery, genocide, crimes against humanity.

Members voted 178 in favour and 158 against, so the change was made.

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Catch up on Parliament TV
Read the Lords Hansard transcript

Report stage day one: Monday 28 November

Report stage is an extra chance for members to closely scrutinise elements of the bill and make changes.   

Proposed changes

Two days of report stage were scheduled:

Monday 28 November
Wednesday 30 November

Members speaking on day one of report stage put forward amendments (PDF) (changes) on subjects including the NHS, a set of principles to consider in procurement and strategic priorities in the National Procurement Policy Statement, including climate change.

Lord divisions

There were three divisions (votes) on proposed changes to the bill.

NHS public authority

The first vote was on amendment 3, which ensures that the National Health Service is included in the definition of a public authority under the new law.

Members voted 196 in favour and 183 against, so the change was made.

Procurement policy principles

The second vote was on amendment 46, which requires the government to consider a set of principles before publishing the National Procurement Policy Statement.

These principles include:

economic, social, environmental and public safety priorities
value for money, transparency and accountability for public spending
fair treatment of suppliers and non-discriminatory decision making.

Members voted 163 in favour and 162 against, so the change was made.

Strategic priorities

The final vote was on amendment 47, which ensures that legal requirements regarding climate change, the environment, public services, supplier innovation and abuse of public money become strategic priorities in the National Procurement Policy Statement.

Members voted 165 in favour and 150 against, so the change was made.

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Read the Lords Hansard transcript

Committee stage day seven: Wednesday 26 October

Members speaking on the final day of committee stage put forward changes (amendments) on subjects including:

key performance indicators or quantifiable measures in contracts
conflicts of interest.

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Committee stage day six: Monday 24 October

Proposed changes

Members speaking on day six of committee stage put forward changes (amendments) on subjects including:

excluding suppliers for improper behaviour
framework agreements
dynamic markets.

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Read the text of proposed changes (PDF)
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Read the transcript in Lords Hansard

Committee stage day five: Monday 18 July

Members speaking on day five of committee stage put forward amendments (PDF) (changes) to the bill to be discussed.