2025 – The Year Ahead
2025 promises to be an intriguing year ahead, especially after the rollercoaster of 2024. In 2024, we had the local elections, a general election, a new government, the summer recess, the delayed Procurement Act, and the Autumn Budget – a fair share of changes and challenges! As we step into 2025, we can anticipate more shifts and surprises. Here, we'll explore some key fixed points to keep an eye on throughout the year.
Trump Presidency
The prospect of a Trump presidency could bring significant changes and challenges for the UK, and a knock-on effect for the procurement and bidding landscape. With Trump's promise to end the war in Ukraine and plans to impose tariffs on goods imports, the UK economy could face serious implications.
As the US is the largest single export destination for Britain, potential tariffs at a rate of 10% on all goods imports could impact economic growth. Although Whitehall has been preparing for months, and the Chancellor has suggested it's too early to predict the full impact, the possibility of escaping tariffs hinges on the UK being seen as a 'friendly nation'.
In the event of negotiating a future UK-US trade deal, significant concessions, such as allowing US corporate access to the NHS or relaxing agricultural regulations, may be on the table. These developments could have ripple effects across various sectors, making our procurement and bidding environment even more unpredictable.
The Procurement Act 2023
It was delayed from last November and is now set to go live on 24th February, and the Procurement Act 2023 is expected to bring significant changes for suppliers. This act aims to simplify the bidding processes, making it easier to bid, negotiate, and work in partnership with the public sector, including a new 'competitive flexible' procedure. It will also make commercial frameworks more open, removing bureaucratic barriers for smaller businesses and VCSEs, enabling them to compete for more contracts.
However, there are always chances of delays, and rumours suggest the act could be pushed back even further. Stay tuned, as whenever it does go live, we will have a special series on what it means for you.
Spring Forecast
The UK Government Spring Forecast on 26th March will provide us with crucial economic updates that, while not a budget, will certainly have implications for spending plans and procurement decisions.
Local Elections
The upcoming local elections on 1st May 2025 will be quite an event, with 21 County Councils, 10 Unitary Authorities, and several mayoral positions up for grabs. Most of these councils are currently conservative-controlled or leaning that way, reflecting the high point of Boris Johnson's tenure. While it's unlikely that Labour will make significant gains due to its incumbency and a rocky start, we should keep an eye on Reform, the Lib Dems, and the Greens. They might flip some councils or turn them to No Overall Control.
It's important to remember that a large portion of procurement goes through councils, so the election results could significantly impact future tenders and procurement decisions.
Autumn Budget
The big fiscal event of the year is the Autumn Budget in late October, where we'll get an understanding of the Labour government's spending plans – which will affect where money is allocated, and potential procurements.
Conclusion
In summary, 2025 is shaping up to be a year of significant change and opportunity, particularly in the realms of procurement and economic policy. With the potential impacts of a Trump presidency, the introduction of the Procurement Act 2023, and key events like local elections and the Autumn Budget, it's crucial for us to stay informed and adaptable. As we navigate these developments, let's remain optimistic and proactive, ensuring that we are well-prepared to seize the opportunities that lie ahead. Here's to a successful 2025!