Procurement and supply chain bulletin: 28 March 2024

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Procurement and supply chain bulletin

28 March 2024

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Procurement and supply chain

Procurement Regulations 2024 update

We can confirm that the Procurement Regulations 2024 were laid in Parliament earlier this week. This statutory instrument (SI), a form of secondary legislation, applies a broad range of powers within the Procurement Act, providing additional detail around various aspects of the new procurement regime.

This additional detail will support contracting authorities in assessing the applicability of the Act, for example, providing lists of goods and services that are subject to lighter touch provisions and the content of the Transparency notices.

The Cabinet Office has also published the Government’s response to two-step public consultation on the draft regulations conducted over the summer of 2023.

Consultation questions sought to understand the extent to which the draft secondary legislation provisions effectively implement the policy intent as set out in the Bill, in order to improve the drafting of the SI. The consultation found stakeholders, including the LGA, to be supportive of the draft regulations, and therefore no significant changes to the draft were deemed necessary. 

There are some slight changes to the content of the SI from the draft regulations, for example the regulations for transition will follow later and other specific regulations such as the utilities calculations are not included within this SI – these calculations will be published as soon as possible.

Procurement Act 2023 Guidance

To support our stakeholders in their preparation for the Act, we will be publishing a suite of guidance documents that address all aspects of the new regime.

These guidance documents cover a broad range of subjects from covered procurement through to pre-market engagement, award rules, exclusions and contract modifications. The documents are intended to provide technical guidance, and help with interpretation and understanding of the new regime.

The first suite of guidance documents have been published and comprises:

  • contracting authority definition
  • covered procurement definition
  • valuation of contracts
  • mixed procurement
  • exempted contracts
  • thresholds.

Transition guidance will also be published shortly with the rest following on in batches with the aim to publish the full suite of documents by the end of June 2024. 

For all your questions relating to implementation of the Act please email

Procurement Policy Note PPN01/24 Carbon Reduction Contract Schedule

The Carbon Reduction Schedule PPN provides standard T&Cs to support contract specific decarbonisation objectives to be set and delivered, and provides a framework to monitor and assess the Supplier’s decarbonisation performance. These include contract specific GHG emissions reporting, setting supplier GHG emissions reduction targets and monitoring and reducing GHG emissions throughout the life of the contract though a supplier GHG emissions Reduction Plan.

Procurement Policy Note PPN02/24: Improving Transparency of AI use in Procurement

Artificial Intelligence (AI) systems, tools and products are part of a rapidly growing and evolving market, and as such, there may be increased risks associated with their adoption. Care should be taken to ensure that AI is used appropriately, and with due regard to risks and opportunities. As the Government increases its adoption of AI, it is essential to take steps to identify and manage associated risks and opportunities, as part of the Government’s commercial activities.

PPN 02/24 provides optional questions to help identify the use of Artificial Intelligence in procurements, and in the delivery of Government Services.

AI regulation 

We have published a policy brief to help councils understand the Department for Science, Innovation and Technology's response to the AI White Paper consultation and what it means for local government. The LGA, alongside SOLACE and Socitm, responded to the white paper, which informed the latest government update explained in this brief. If you are interested in taking part in conversations about the use of AI in local government, please join our AI network

Microsoft pricing negotiations 

The Crown Commercial Service (CCS) is currently negotiating the next Microsoft MOU which dictates pricing across the public sector apart from the NHS. Despite months of negotiations, the savings that Microsoft is offering are still not equal to the value of those contained within the current MOU. The current MOU, due to expire on 30 April, has been extended by six months until 31 October 2024.

Through Microsoft, CCS has data on the current Microsoft spend and scope of the spend in local government, however, needs more information on council plans for Microsoft and competitor spend in key products and services over the next 3 years to support its negotiating position.

LGA, Socitm and Solace would greatly appreciate your contribution to this call for evidence to ensure that local government needs and priorities are being factored into CCS’s considerations – just complete our online questionnaire. This information will be aggregated and only shared with CCS to support their negotiating position.

Please also note that in order to maximise the chance of reaching a successful conclusion and delivering savings for councils, CCS requests that councils defer entering into any new contracts with Microsoft until negotiations are concluded.

LGA has several update briefs marked official sensitive that can be shared with councils on the condition they are not shared outside of their organisation. If you would like to be sent these briefs or have any questions, please get in touch via

Heat Networks Efficiency Scheme 

Round 7 of the Heat Networks Efficiency Scheme is now open and will close for applications on 26 July 2024. The scheme is open to public, private and third sector applicants to support improvements to existing district heating or communal heating projects that are operating sub-optimally. 

Net Zero – Strategy and Support Research Report 

Between October 2023 and January 2024, the LGA surveyed its members to understand how central government is assisting council’s climate change policy and the delivery of net zero locally. We received 87 responses which fed into the final report.


Empowering Giants: Examining the Impact & Influence of the Superusers

16 April 2024 | Virtual

Updated Greenhouse Gas Accounting support for councils

23 May 2024 | Virtual


24 April 2024 | Virtual 

Procurex National

16 May 2024 | Liverpool Exhibition Centre

South Value in Action – South Value Conference

15-17 October 2024 | In person/virtual