Guide to the four new procurement objectives (Procurement Act 2023)

Guide to the four new procurement objectives (Procurement Act 2023)

The Procurement Act 2023 represents a seismic change in how procurement contracts are managed in the public sector, and many organisations are still adjusting their processes to adapt to the changes. One of the key cornerstones of the Act is the four new procurement objectives, which replace the ‘principles’ set out in previous legislation.

In this blog, we’ll unpack each of the new procurement objectives, exploring what they mean in real-world procurement settings and how public sector buyers can effectively embed them into their strategies.

Jump to:

• Why the procurement objectives matter
• Objective 1: Delivering value for money
• Objective 2: Maximising public benefit
• Objective 3: Sharing information to allow proper scrutiny
• Objective 4: Acting with integrity

Why the procurement objectives matter

The objectives aren’t just random, non-deliverable concepts conceived by the government. Instead, they’ve been created to reflect the UK’s ambition to create a more agile, transparent and outcome-driven procurement landscape - and these objectives are designed to be a foundation of that.

They’re also guiding organisations to act more responsibly, ensuring that they’re not only legally compliant but provide benefit to the public, both socially and economically.

Understanding these objectives is essential for any organisation, particularly as compliance will be monitored and scrutinised more than ever under the new regime.

Objective 1: Delivering value for money

The principle of value for money is not new in procurement. Organisations have always strived to ensure each contract produces value for both them and the public purse, however its inclusion as the first objective in the Procurement Act gives a strong indicator on how seriously organisations need to take it - especially in the current climate.

In practice, value for money means more than just choosing the lowest price. Buyers need to evaluate how well a procurement outcome achieves its intended goals relative to cost, including things like the quality, whole-life value, and innovation involved. This could mean adapting more nuanced scoring systems when reviewing tenders, or using outcome-based specifications that measure supplier performance beyond the contract award.

Organisations should consider:

• Whole-life cost models rather than short term pricing.
• Factoring in social, environmental and operational performance, as well as price.
• Developing KPIs that monitor delivery.

Objective 2: Maximising public benefit

Procurement isn’t just about buying goods or services - it’s also a powerful tool for delivering good in society, and it’s why maximising public benefit has become a key objective under the new Procurement Act.

This encourages organisations to consider how their decisions can support wider social, economic and environmental goals. For example, could a facilities management contract support local employment or apprenticeships? Or could a supply chain choice contribute to environmental sustainability? 

The idea is to use public money not just efficiently, but purposefully, and to improve the lives of those in local communities.

Organisations might wish to think about:

• What specific social, economic or environmental outcomes its procurement could achieve. This might include local job creation, SME participation, or carbon reduction.
• Building these outcomes into evaluation criteria using measurable indicators.
• Engaging early with the market to understand how suppliers can add value, beyond core deliverables.

Objective 3: Sharing information to allow proper scrutiny

Transparency is a core pillar of the Procurement Act, and the third objective underscores the importance of openness and accessibility throughout the procurement cycle.

Under the new regime, organisations are expected to share information at key stages of the procurement process - not just at the end. The aim is for suppliers, auditors and the public to better understand how decisions are made, who is winning contracts, and how suppliers are performing once contracts are live.

This marks a shift away from minimum compliance towards proactive openness. Transparency isn’t about ticking boxes, and organisations will be expected to demonstrate that procurement is being carried out fairly, lawfully, and in the public interest throughout the contract process.

Below is a list of some things that could be shared at the various stages of the procurement process.

Objective 4: Acting with integrity

Integrity, and the concept of acting fairly and ethically, is not just a legal obligation - it’s also a cultural imperative within public procurement.

Organisations need to ensure they treat suppliers fairly, avoid conflicts of interest, and conduct activities with honesty and due diligence. The aim is to protect public trust, and ensure that procurement outcomes are free from bias or corruption. It also means recognising and mitigating risks that could undermine trust in the process.

Procurement decisions are often subject to external scrutiny, so organisations must be able to clearly explain and evidence how and why decisions have been made.

Organisations should look at:

• Putting in place robust conflict of interest policies, and ensuring staff are trained to spot and flag potential conflicts.
• Maintaining clear audit trails for decisions and justifications.
• Developing internal guidance for ethical procurement.

The new procurement objectives under the Procurement Act 2023 provide a clear and consistent framework for buyers across the public sector. While they represent a shift in emphasis - particularly around social value and transparency - they also offer an opportunity to enhance the impact of every pound spent through public procurement. 

At Procurement Hub, we understand that embedding these new procurement objectives will require a combination of strategic alignment, operational changes, and cultural shift. Our procurement frameworks and other solutions are designed with flexibility and transparency at their core, ensuring they align with the new regulatory landscape.

You can find out more about how legal changes will affect your organisation in our Essential Guide to the Procurement Act.