Charities have been asked to share their views on the government’s plans to increase public sector procurement spending with the sector.
Earlier this year, the Cabinet Office published a procurement policy statement for central government departments, requiring them to “maximise procurement spend” with voluntary, community and social enterprise (VCSE) organisations.
It has since opened a consultation, which runs until 5 September and proposes amending the Procurement Act 2023 to mandate other large public bodies to set direct VCSE spending targets.
The proposals would require contracting authorities with a procurement spend over £100m per year, including large councils and NHS Trusts, to publish their own three-year targets for direct spend with SMEs and VCSEs and report against them annually.
Sector umbrella body NCVO has now asked charities to respond to its own survey to help formulate its response to the government’s consultation on the new public procurement rules.
NCVO issued the call-out late last week for voluntary organisations that deliver public services for public bodies, or add social value for government suppliers.
It will use the survey responses to prepare a response to send to the government, which has requested feedback from the sector on the proposed changes to public procurement rules.
The umbrella body described the consultation as “an opportunity to push for a system that works better for voluntary organisations”, but noted that the proposed changes could “significantly affect how charities and voluntary organisations deliver public services”.
NCVO: ‘Current system isn’t working as well as it could’
In recent years, the rules for how authorities purchase goods and services have changed, beginning with the Procurement Act 2023, which introduced a new competitive flexible procedure and replaced the “light touch regime”, a simpler process that previously applied to services like health and care.
As well as the direct spend targets, the Cabinet Office has also proposed focusing social value requirements on jobs and opportunity for high-value contracts; taking a more standardised approach to social value, and clarifying where a full competitive procedure is not required for services that support people the government defines as “vulnerable”.
NCVO said these proposals could open up more opportunities or create new barriers for charities that deliver public services or work with other providers to add social value.
Saskia Konynenburg, interim CEO of NCVO, said: “The voluntary sector is a major deliverer of public services, but the current system isn’t working as well as it could.
“Too many charities, especially smaller organisations, still face barriers to working effectively with public bodies - from social value criteria that overlook our unique contributions, to overly competitive processes that hinder collaboration.
“The government’s public procurement consultation presents a real opportunity to influence and improve the commissioning and procurement environment for the voluntary sector and help make sure the system works for the people and communities our sector supports.
“We want to ensure our response is informed by the real experiences of charities, so that we can make the strongest possible case for change. To do that we need charities to engage, and we look forward to getting their input.”
NCVO’s survey closes at 9am on 18 August.
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