NEWS STORY : Government procurement rules to give greater weight to British jobs and skills [August 2026]

STORY

Businesses bidding for major Government contracts will face new assessments of the jobs, training and community benefits they intend to provide. The Cabinet Office said the changes would apply across a central Government procurement market worth about £90 billion a year, with bidders judged on commitments including apprenticeships, work placements, skills development and support for people facing barriers to employment.

For contracts worth £5 million or more, the weighting attached to local and social benefits will increase from 10 per cent to 20 per cent. The Government said the revised system would place greater emphasis on employment opportunities for young people, care leavers, people with long term health conditions and those who are not in education, employment or training.

The threshold at which the requirements normally apply will rise to contracts worth more than £1 million, which ministers said would reduce burdens on smaller companies, social enterprises and voluntary organisations. Successful suppliers will also be expected to report annually against agreed performance measures, with the new arrangements due to take effect from 1 January 2027.