New government regulations hit back against shoddy suppliers

New powers have been announced today to allow the government to exclude historically poor suppliers from winning public contracts.

The plans are part of the government’s changes published as part of the consultation response to its procurement green paper.

The new powers aim to give the government more discretion to exclude previously poorly performing suppliers, such as those who have not delivered previous projects on budget or on time.

Suppliers can also be banned if they have undertaken unethical practices, such as a lax approach to safety, or where there are national security or environmental concerns.

Chancellor of the Duchy of Lancaster Steve Barclay said: “Leaving the EU gives us the perfect chance to make our own rules for how the government’s purchasing power can be used to promote strong values.

“While doing so we’re increasing transparency and ensuring that procurement remains fair and open.

“These simpler and more flexible rules will also make it easier for small businesses to win work – placing levelling up at its heart.”

Under the current rules, suppliers can only be excluded from winning new government contracts if there has been a significant breach of contract.

With about £300bn spent every year on public projects such as the delivery of new schools, hospitals and roads, public procurement represents about a third of all public expenditure.