PPN 001 — The New Procurement Push for SMEs and VCSEs

Levelling the Playing Field in Public Procurement: What PPN 001 Really Means

When the government talks about “levelling the playing field” for smaller suppliers, I’ll be honest — part of me gets excited, and part of me braces for disappointment.

Excited because PPN 001, issued in February 2025, is exactly the kind of structured, accountable policy we’ve been calling for: deadlines, ministerial sign-off, and a focus on SMEs and VCSEs as engines of economic growth.

Cautious because, in my experience, central government can take an eternity to move from intention to execution. We don’t have that luxury.

From 1 April 2025, every central government department, its executive agencies, and NDPBs must set three-year targets for direct spend with SMEs. From 1 April 2026, the same goes for two-year targets with VCSEs. These are big moves — but a target without action is like a satnav without a car.

“Policy without tools is just paper. We need the commitment and the means to make it work.”

The Procurement Act 2023 is meant to add teeth:

• Duty to remove barriers — I’ve lost count of the times SMEs have been blocked by criteria that had nothing to do with capability. This duty forces buyers to rethink.

• Better visibility — SMEs need time to prepare. This is about meaningful early engagement, not a last-minute notice buried on a portal.

• No more pre-award insurance hurdles — A long-overdue fix.

• 30-day payment terms — This will be a cultural shift as much as a contractual one.

  
  

Here’s my view: if we wait for the perfect government machinery to fall into place, we’ll still be talking about this in 2030.

“Big shifts don’t have to be big bangs — we can start eating this elephant one bite at a time.”

Even small wins matter: onboarding one new SME supplier in a high-spend category, running a single targeted engagement event, or using better data to identify a quick opportunity. This is where the Kaizen mindset — continuous, small improvements — beats the “we’ll fix it all in one go” fantasy.

“Even small wins matter — one new SME supplier, one targeted engagement event, one quick data insight.”

And yes, government will need to lean into platforms like ours to deliver on the detail. Because policy without tools is just paper.