The European Parliament has approved a new set of procurement rules which the NCVO believes will cut red tape for charities.

The EU Procurement Directives will contain measures to encourage public sector commissioners to break up procurement into smaller contracts or explain why they have not done so, and will also include a “most economically advantageous” rule, intended to encourage public sector bodies to give more regard to social value when tendering out contracts.

The rules will also raise the threshold over which some types of contract, including social and health services, must go out to tender across the EU. The present threshold is €200,000, and this will rise to €750,000.

And they will create a protected period for charities and social enterprises spun out of government during which they will not have to compete with other companies – an exemption which the UK government campaigned for.

Before the rules come into force in the UK they must be transposed into UK law. Oliver Henman, head of partnerships and international at the NCVO, said he expects the Cabinet Office to consult shortly on exactly how the new rules will be implemented, and to introduce them by mid-2014.

“There are some helpful things in the new rules,” he said. “Charities bidding for some local authority contracts will face less bureaucracy.

"We’ll be watching the government consultation to ensure these rules are effectively implemented, and we’ll be doing a lot of work to raise awareness of these rules at a local level.”