National Procurement Policy Statement (NPPS)

Public procurement is not just about buying goods and services efficiently. UK governments have increasingly used procurement as a lever for achieving broader policy goals: supporting domestic suppliers, advancing net zero targets, driving social value, and creating employment opportunities in disadvantaged areas. The National Procurement Policy Statement (NPPS) is the mechanism through which the UK government sets these strategic priorities and makes them binding on public buyers.

What is the National Procurement Policy Statement?

The NPPS is a statutory document that the Minister for the Cabinet Office must prepare and lay before Parliament under the Procurement Act 2023. All contracting authorities subject to the Act must have regard to the NPPS when carrying out covered procurement. "Having regard to" is a legal standard that requires the authority to consider the statement's priorities and be able to demonstrate that it has done so, though it does not require the authority to follow every priority in every procurement where that would be inappropriate.

The NPPS typically sets out the government's priorities for procurement in areas such as: value for money (understood as whole-life value, not just lowest price); transparency and open data; support for small and medium-sized businesses; social value and the application of the Social Value Act 2012; net zero and environmental sustainability; and building strategic supplier relationships for critical national infrastructure.

The statement also provides guidance on the application of the procurement objectives set out in the Act itself, helping buyers understand how to balance competing considerations in practice.

Why it matters for bidders

The NPPS shapes what buyers prioritise in their award criteria and in how they structure procurements. If the current NPPS emphasises net zero commitments, buyers will be encouraged to include carbon reduction criteria in evaluations. If it emphasises SME access, buyers will be encouraged to break contracts into lots, remove disproportionate turnover requirements, and use dynamic markets to keep the supplier pool open.

Reading the current NPPS before preparing a bid helps you understand the policy environment in which the buyer is operating. A buyer that is under pressure to demonstrate NPPS compliance will respond well to bid content that directly addresses those priorities.

Example

The NPPS directs contracting authorities to consider social value in all above-threshold procurements and to include a minimum social value weighting of 10% in central government contracts. A supplier bidding for a GBP 5 million training services contract allocates significant narrative resource to the social value section, demonstrating local employment creation, apprenticeship commitments, and supply chain development. This directly addresses the buyer's NPPS obligations and differentiates the bid from competitors who treat social value as an afterthought.

Frequently Asked Questions

How often is the NPPS updated?

The Act does not fix a mandatory review interval, but the government is expected to update the NPPS when significant policy priorities change. The NPPS must be laid before Parliament and may be subject to parliamentary scrutiny. Suppliers should check the current version on GOV.UK before major bids.

Does the NPPS apply to all UK public bodies?

It applies to all contracting authorities subject to the Procurement Act 2023 in England, Wales, and Northern Ireland. Scotland's procurement regime has its own equivalent policy statements.

Can a contracting authority deviate from the NPPS priorities?

Yes, provided it has documented reasoning for doing so. "Having regard to" the NPPS does not mean blind adherence. A contracting authority may determine that a particular NPPS priority is not relevant to a specific contract and record that determination. What it cannot do is simply ignore the NPPS without consideration.