Public Procurement Under Burnham: What SMEs Need to Know

Public procurement is entering another period of change, and for SMEs looking to grow through public sector contracts, there are good reasons to pay attention.

Following Andy Burnham's arrival as Prime Minister, the early direction of the new government has placed renewed emphasis on British businesses, domestic supply chains, regional growth and using public spending to support the wider economy.

This matters because the public sector spends more than £400 billion each year buying the goods and services needed to deliver public services, infrastructure and other government priorities. Even relatively small changes to where and how that money is spent can therefore create significant opportunities for suppliers.

For SMEs, however, a more supportive policy environment does not automatically translate into contract wins.

Understanding where procurement is heading, and preparing before opportunities reach the tender stage, could be key to making the most of any changes ahead.

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Why are SMEs Important to Public Procurement?

SMEs make up the overwhelming majority of UK businesses. According to government guidance, they accounted for 99.9% of the UK business population at the start of 2024, with small businesses employing fewer than 50 people alone accounting for 99.2%.

Government procurement policy already recognises the importance of giving these organisations greater access to public contracts.

The National Procurement Policy Statement (NPPS), which came into effect alongside the Procurement Act 2023 in February 2025, identifies economic growth as a strategic procurement priority. Government guidance specifically highlights strengthening supply chains and giving SMEs and voluntary, community and social enterprises (VCSEs) a fair chance at public contracts.

This direction therefore predates the Burnham government - what has changed is the political emphasis surrounding it.

Early commentary around Burnham's government has focused on a "Buying British" approach, alongside wider ambitions around reindustrialisation, devolution, skills and apprenticeships. For SMEs already operating within UK supply chains, this could make public procurement an increasingly important route to growth.

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What Could a "Buying British" Approach Mean for SMEs?

The idea of using procurement to support British businesses isn't entirely new.

In March 2026, the government announced further plans to modernise public procurement, explicitly discussing the use of approximately £400 billion of annual public procurement expenditure to support British businesses and workers. The announcement also highlighted plans to reduce barriers facing small businesses, start-ups and charities.

This was followed by further government announcements focused on using procurement to strengthen national security, economic resilience and strategically important British industries. In June 2026, the government confirmed that £5 billion in contracts had been awarded to British firms since March as part of this approach.

Burnham's arrival therefore comes against an existing backdrop of procurement reform. The direction under the new government appears to be a continuation and potentially an expansion of this approach, with greater political attention being placed on British suppliers, skills, apprenticeships and regional economic development.

For SMEs, the important question isn't simply whether the government intends to "buy British". It's how those priorities eventually translate into individual procurements.

Changes could influence how contracting authorities approach areas such as supply-chain resilience, employment, skills and wider economic value. But businesses should be cautious about assuming that being a British SME will, by itself, create an advantage.

Suppliers will still need to demonstrate that they can meet the requirements of the contract and provide a competitive, evidenced tender response.

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The Procurement Act Has Already Changed the Landscape

Any new procurement priorities introduced under Burnham will operate within a system that has already undergone significant reform.

The Procurement Act 2023 came into force on 24 February 2025 and was designed, in part, to create a more open and transparent procurement regime and improve opportunities for smaller businesses.

Government guidance identifies several reforms specifically intended to make public procurement more accessible to SMEs.

These include:

• A duty for contracting authorities to consider SME participation and whether barriers to participation can be removed or reduced
• Greater visibility of future public sector opportunities
• Increased use and visibility of preliminary market engagement
• Restrictions on certain barriers to SME participation, including requiring insurance to be in place before contract award in particular circumstances
• 30-day payment terms throughout public sector supply chains
• Greater transparency around contracting authorities' payment performance.

These changes are significant because some of the biggest challenges SMEs face when bidding aren't necessarily related to their ability to deliver the contract.

Time, resource and visibility can all affect whether a smaller supplier is realistically able to compete. The new regime provides businesses with more opportunities to prepare earlier.

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Don't Wait for the Tender to Appear

We've spoken at length about the importance of tender preparation, but this is even more vital for bidding SMEs considering the increased visitbility of procurement pipelines.

A pipeline notice provides information about future public contract opportunities. Government guidance explicitly states that this can particularly benefit SMEs by giving them more time to plan for upcoming work and helping to create a more competitive and diverse market.

For SMEs, this changes how procurement opportunities should be approached. Rather than relying solely on live tender notices, businesses can monitor future procurement activity and identify relevant opportunities considerably earlier in the process.

A pipeline opportunity might give a business time to:

• Review its existing case studies
• Identify gaps in policies or accreditations
• Strengthen its supporting evidence
• Consider potential delivery partners
• Develop its social value commitments
• Allocate internal bid resource
• Make an informed bid/no-bid decision.

This preparation can be particularly valuable for SMEs with smaller teams, where responding to a major tender at short notice can place significant pressure on day-to-day operations.

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Get Involved Before Procurement Begins

Preliminary market engagement provides another opportunity for SMEs to become involved earlier. Under the Procurement Act, preliminary market engagement takes place before the publication of a tender or transparency notice. Its purpose is to help both contracting authorities and the market prepare for an upcoming procurement.

Authorities can publish a preliminary market engagement notice inviting suppliers to participate, which gives SMEs an opportunity to engage with buyers before the final procurement has been designed. For smaller businesses, this is important.

A business may have specialist knowledge, innovative delivery methods or experience of a particular market that could be valuable to a contracting authority. Engaging early provides an opportunity to understand what buyers are trying to achieve while giving authorities greater insight into the capabilities available within their supplier market.

Waiting until the tender is published means missing this earlier stage of the procurement lifecycle.

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SME Procurement Targets are Already in Place

There is also increasing pressure on central government departments to demonstrate how much they are spending with SMEs.

Procurement Policy Note 001 requires central government departments, including executive agencies and non-departmental public bodies, to establish three-year targets for direct spend with SMEs from 1 April 2025 and report their results annually.

These requirements aren't a new Burnham policy. However, the new government inherits them at a time when the role of British businesses and SMEs within public procurement is receiving renewed political attention.

This gives suppliers another reason to understand which organisations are purchasing their services and where individual contracting authorities are trying to increase SME participation.

Rather than viewing "the public sector" as one market, SMEs should consider which buyers, sectors and procurement routes are genuinely suited to their business.

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Social Value Remains Vital

The conversation around British jobs, skills, apprenticeships and regional economic growth also overlaps with another established procurement priority: social value.

The government's Social Value Model for central government contracts is designed to account for additional social and economic benefits delivered through public contracts. The model was updated in 2025 to align with the government's wider missions.

For SMEs, this can create an opportunity to demonstrate the impact they already have within their communities and supply chains.

A smaller supplier may, for example, be able to demonstrate commitments around:

• Creating employment opportunities
• Apprenticeships and skills development
• Supporting local supply chains
• Working with SMEs within its own supply chain
• Providing training or work experience
• Delivering measurable benefits within the communities where a contract operates

The important word here is measurable.

Statements such as "we support local employment" or "we are committed to our community" are unlikely to demonstrate the same level of credibility as specific, contract-relevant commitments supported by clear targets, timescales and methods of measurement.

If the political emphasis on jobs, skills and domestic economic impact continues under Burnham, SMEs should consider whether they can clearly evidence the value their organisation creates beyond simply delivering the core contract.

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A More SME-Friendly Market Doesn't Mean an Easier Market

Greater accessibility shouldn't be confused with reduced competition.

Changes introduced through the Procurement Act can help remove unnecessary barriers and make opportunities more visible, but SMEs still need to demonstrate that they are capable of delivering. Strong tender responses typically depend on far more than meeting basic eligibility requirements.

Businesses need evidence - that can include relevant contract examples, performance data, client outcomes, mobilisation experience, management processes, social value results and evidence demonstrating how risks will be controlled. This is where preparation becomes particularly important.

If a relevant opportunity appeared tomorrow, would your organisation already have the evidence needed to support its claims? If not, now is the time to start building it.

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How Can SMEs Prepare?

The political landscape may change quickly, but the fundamentals of good bidding remain much more consistent.

For SMEs looking to take advantage of future public sector opportunities, there are several actions worth taking now.

Build an evidence library

‍Collect relevant case studies, KPIs, testimonials, policies, accreditations and examples of successful contract delivery. Make sure these are updated regularly rather than waiting until a tender deadline.

Monitor procurement pipelines

‍Look beyond live tenders and identify contracts expected to come to market in the months and years ahead.

Research your target buyers

Identify which central government departments, councils, NHS organisations, housing providers and other contracting authorities regularly procure the products or services you provide.

Participate in market engagement

‍Look for preliminary market engagement notices, supplier events and consultations relevant to your sector.

Strengthen your social value evidence

‍ Record what your organisation is already delivering around employment, training, apprenticeships, supply chains and communities, and establish how future commitments will be measured.

Review your bid capability

‍Consider who will manage opportunities, coordinate evidence, write responses and oversee compliance when a suitable tender appears.

Be selective

‍Greater visibility doesn't mean every opportunity is right for your business. Strong bid/no-bid decisions allow SMEs to concentrate limited resources on contracts they have a realistic chance of winning.

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Opportunity is Only Valuable if You're Ready for it

The increased political attention being placed on British businesses and public procurement is encouraging for SMEs, but it is important to distinguish political ambition from guaranteed opportunity.

The Procurement Act has already introduced measures intended to improve SME access, while government departments are now operating against specific SME procurement-spend targets. Burnham's early agenda could add further momentum to this direction, particularly if the government continues to emphasise British supply chains, regional growth, employment and skills.

For SMEs, the most effective response isn't to wait and see what happens. It's to prepare.

At Bid Writing Service, we work with SMEs across the UK to help them identify opportunities, prepare for procurement and produce stronger, evidenced tender submissions.

From individual bid writing and review support to longer-term bid management and content development, our services can be tailored to the level of support your business needs.

If you're looking to strengthen your approach to public sector tendering and prepare for upcoming opportunities, get in touch with the BWS team on info@bidwritingservice.com