1. Remaining Procurement Act duties come into effect
The Procurement Act 2023 (Commencement No. 4) Regulations 2025 were made on 9 December 2025, and bring into force the duties on contracting authorities to publish:
- Payments compliance notices under section 69 of the Act from 1 January 2026 for England and 1 April 2026 for Wales;
- Significant payments notices under section 70 of the Act from 1 April 2026 in England (a commencement date has yet to be confirmed for Wales); and
- Contract performance notices under section 71 of the Act from 1 January 2026 for England, Wales and Northern Ireland.
The commencement of these remaining duties means that significantly more information about payment and performance under public contracts will become available in the public domain. This will have significant implications for authorities and suppliers, as we discussed in our recent webinar.
The updated procurement thresholds under the Act also came into effect on 1 January 2026 (see our article).
2. First Court decisions under the Act
The first decisions of the UK Courts on proceedings under the Act are expected during 2026. It is hoped that these decisions will provide further clarity on some of the new concepts and principles introduced under the Act, including the objectives of procurement in section 12.
An updated Technology and Construction Court (TCC) Guidance Note on Procedures for Public Procurement cases is also expected to be published in 2026, which we understand will include an increased onus on authorities to disclose key materials to a claimant before formal litigation commences.
3. First "cross-border" procurements under the Act
The Cross-Border Public Procurement (Miscellaneous Amendment) (Scotland) Regulations 2025 came into effect on 20 December 2025, and pave the way for the first "cross-border" procurements under the Act.
For example, it will allow devolved Scottish authorities to make use of UK-wide Frameworks established under the Act (e.g. by Crown Commercial Service). Devolved Scottish authorities will be bound to comply with the majority of the provisions of the Act when using such UK-wide Frameworks.
Further legislation under section 113(2) of the Act is awaited to clarify the rules that will apply to contracting authorities in the rest of the UK that wish to use Frameworks established under the Scottish legislation.
4. Further procurement law reform
The Cabinet Office's consulation on further reforms to public procurement to promote national interest, strengthening the UK’s economic resilience and supporting British businesses (see our article) closed in September 2025. The outcome, including any associated draft legislation, is expected in 2026.
The Scottish Government's consultation on amendments to the thresholds for regulation under the Procurement Reform (Scotland) Act 2014 closed on 8 January 2026, with the results also expected in 2026.
The Welsh Government's consultation on draft regulations under Part 3 of the Social Partnership and Public Procurement (Wales) Act 2023 relating to socially responsible public procurement closed on 14 October 2025, meaning Part 3 is likely to be brought into force in 2026.
The European Commission is also expected to publish a new Public Procurement Act in 2026. While this will not have effect in the UK, it is likely to have implications for potential future procurement reform in Scotland, where procurement laws based on the existing EU Procurement Directives continue to apply.
5. Prevention of a "two-tier workforce" in Public Sector outsourcing
The Employment Rights Act 2025 (ERA), which is expected to soon receive Royal Assent, will amend the Act to include provisions that seek to protect transferring workers (and those working alongside them) on public sector outsourcing contracts.
The new provisions reflect the principles behind the previous "Code of Practice on Workforce Matters", which was revoked in 2011. The aim is to ensure that, where public services are outsourced, the contractor's other employees are not treated less favourably than the incoming public sector workers, and vice versa (i.e. preventing a "two-tier workforce").
The provisions are expected to come into force in autumn 2026, after relevant Regulations are made and a new Code is published.
6. First debarment and PRU decisions
We expect that 2026 will bring the first suppliers being added to the "debarment list", which is a centralised list of suppliers whose past behaviour or circumstances mean that they are not, or may not be, allowed to participate in covered procurements or be awarded public contracts. Inclusion on this list has significant consequences for a supplier, as discussed on our webinar on this topic.
The first decisions of the Procurement Review Unit (PRU) established under the Act are also likely to emerge during 2026, which may include recommendations for particular action to be taken by authorities to improve standards or compliance with the Act.
