Procurement reforms in Wales: how the new regime works together

With the Procurement Act 2023 now live, Welsh contracting authorities must consider how it interacts with existing Welsh frameworks, particularly the Social Partnerships and Public Procurement (Wales) Act 2023 (SPPPWA) and the Wales Procurement Policy Statement 2022 (WPPS). The good news is that the frameworks are designed to complement each other. In this article, we explore the two existing frameworks in more detail.  

The Social Partnership and Public Procurement (Wales) Act 2023

The SPPPWA introduces three key reforms: 

1. A Social Partnership Council – a new advisory body made up of government, employer and worker representatives, helping shape socially responsible procurement and advance the “prosperous Wales” goal
2. Amendments to the Well-being of Future Generations (Wales) Act 2015 (WFGA) – embeds “fair work” into public bodies’ wellbeing objectives and introduces a new duty to collaborate with staff or unions on sustainable development
3. A Socially Responsible Procurement Duty – public bodies must: (1) improve economic, social, environmental and cultural wellbeing through procurement, (2) publish principles to support this and (3) incorporate forthcoming model public works clauses (for works contracts over £2m) covering prompt payment, fair work, small and medium-sized enterprises (SMEs) access, sustainability and more.

Although it’s not mandatory, there are strong expectations around the use of these model public works clauses, including a duty to notify the Welsh Minister if they’re not used and public reporting on the Minister’s decision as to whether this is satisfactory. 

It’s important to note that these clauses will apply to some below-threshold contracts, including sub-contracts and will also need to be added when calling off from existing frameworks.  

The Welsh Government expects to hold a public consultation on the model clauses, with implementation likely in 2026.  

Workforce protections and outsourcing

We can also expect to see a new public services outsourcing and workforce code. Under the model social public workforce clauses, protections will be set out for employees transferring under outsourcing arrangements, including safeguarding pay, pensions and fair conditions for all staff. 

Annual reporting

Welsh public authorities must publish annual reports on: 

1. socially responsible procurement  
2. their compliance with the social partnership duty 

The Welsh Procurement Policy Statement

The WPPS sets out 10 principles to align procurement with the WFGA goals. Key themes include: 

1. delivering long-term value for Wales 
2. supporting local supply chains 
3. promoting carbon reduction and net zero 
4. advancing equal opportunities and fair work 

The WPPS complements both the Procurement Act and the WFGA, however, actions under it must not conflict with Procurement Act duties.  

It’s expected that the Welsh Government will enforce the WPPS under the Procurement Act, which will give it formal legal standing for devolved authorities and potentially others. 

In most cases, authorities can meet their duties under all three reforms without conflict, as long as they stay mindful of the core Procurement Act principles, which include transparency, fair treatment and proportionality. 

Nicola Cullen

Associate

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