Procurement Pulse UK – December 2025

Welcome to Procurement Pulse, DLA Piper's newsletter for those interested in developments in public procurement law. In this issue, we cover recent court rulings and policy updates that may impact procurement professionals in both contracting authorities and supplier companies.

 

RECENT COURT JUDGEMENTS

English High Court on lifting automatic suspension in procurement challenge

Wilson James Ltd v Tate Gallery Trustees

This case illustrates how courts approach applications to lift the automatic suspension under the Public Contracts Regulations 2015 and what evidence matters when operational needs conflict with a bidder’s challenge.

Wilson James Ltd, the incumbent security provider for the Tate Gallery, lost a GBP27 million tender and challenged the award, triggering the automatic suspension under regulation 95. The Tate applied to lift the suspension, which Wilson James opposed.

The High Court granted the application, applying the American Cyanamid test. The judge found that damages would be an adequate remedy for Wilson James, noting that claims of reputational harm lacked supporting evidence. The balance of convenience favoured the Tate, as operational risks and the public interest in implementing the new contract outweighed the bidder’s position.

Key takeaway: Automatic suspensions are rarely maintained unless claimants can demonstrate exceptional, irreparable harm. Arguments based on reputational damage seldom succeed without strong evidence.

 

POLICY, GUIDANCE and LEGISLATIVE DEVELOPMENTS

Procurement Act 2023 update

• Wales: The Welsh Government has issued guidance under the Procurement Act 2023 clarifying e-invoicing requirements and implied payment terms. Contracting authorities are reminded to accept standard e-invoices, process payments promptly, and ensure suppliers are paid in line with both the Act and contractual obligations.

• DLA Piper webinar: Martyn Scott and Andy Batty will host a webinar on the Act and "What it Means for the Supply Chain" on 4 December 2025 at 10:30am. It will unpack key developments under the Act, including simplified bidding, enhanced transparency, and tougher sanctions for underperforming suppliers. For details and registration click here.

Procurement Policy Notes (PPNs and SPPNs)

The UK and Scottish Governments have issued important procurement policy updates:

• UK: New PPNs
• PPN 022: Replaces PPN 010 with updated guidance on sourcing steel in government contracts, reflecting changes in project appraisal and commercial policy. Contracting authorities should review procurement strategies to ensure compliance with the latest sustainability and sourcing requirements.
• PPN 023: Provides advance notice of new threshold amounts which govern the procedures for the award of public contracts for goods, works and services as set out in the Procurement Act 2023.

• Scotland: New SPPNs
  • SPPN 01/2025 – Updated guidance on reserving contracts for supported businesses.
  • SPPN 02/2025 – Guidance on annual procurement reports for 2024–25.
  • SPPN 03/2025 – Consultation on Procurement Reform (Scotland) Act thresholds.
  • SPPN 04/2025 – Updates to thresholds derived from the GPA.

UK procurement thresholds updated, EU changes also coming

The UK Government has published the Public Procurement (Amendment of Thresholds) Regulations 2025, updating financial thresholds under the Procurement Act 2023 from 1 January 2026. These changes reflect WTO GPA obligations and currency adjustments. Contracting authorities should update policies and templates now to ensure compliance.

On 23 October 2025, the European Commission confirmed revised thresholds for concessions, public contracts and utilities, also effective 1 January 2026, slightly lowering values for works, services, supply and concession contracts.

Implications for UK Businesses: The UK update is the key development for domestic procurement. Authorities must prepare for the new figures, while UK suppliers bidding in EU markets should note that lower EU thresholds will bring more contracts under full EU rules.

Crown Commercial Service publishes SME Action Plan

On 20 October 2025, the Crown Commercial Service (CCS) launched its SME Action Plan to reduce barriers for small and medium-sized enterprises and boost government spend with SMEs. The plan supports obligations under the Procurement Act 2023 and the National Procurement Policy Statement, which require contracting authorities to consider SME participation.

Key measures for the next 12-18 months include:

• Improving access to the Central Digital Platform
• Publishing upcoming tender opportunities
• Providing clearer guidance on CCS terms and conditions

Implications: SMEs should review the plan and upcoming opportunities to maximise engagement. Larger suppliers should consider how SME participation requirements may influence their bids and supply chains.

EU procurement directives: Revision underway

On 3 November 2025, the European Commission launched a consultation on revising the EU public procurement directives following an evaluation that found the current framework lacks agility. Proposed changes aim to simplify procedures, cut administrative burdens, and improve efficiency, particularly for SMEs.

Digitalisation is central, with plans for a single-entry digital marketplace and enhanced data sharing. The Commission also seeks to align procurement with sustainability, social value, and innovation goals, and is considering “Made in Europe” criteria for strategic sectors.

Responses are invited until 26 January 2026, with proposals expected in Q2 2026.

Implications for UK Businesses: While the UK is no longer bound by EU law, these changes matter for firms active in EU markets or bidding for EU-funded projects. Simplified processes and digital tools could ease cross-border participation, while local sourcing rules may limit opportunities in some sectors.

 

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